ADX and MACD Confluence Strategy with Session Filtering

Summary

This strategy combines directional movement and MACD signals to choose a persistent long or short bias. A long condition requires the positive directional indicator to exceed the negative one while the MACD line is above its signal line; short conditions require the reverse. The position state changes when the opposite combined condition appears. Entries may be restricted to a configurable trading session, while exits can occur at any time.

Positions also have an absolute stop based on average entry price. The code closes a long when its combined long condition ceases to hold, and closes a short when its combined short condition ceases. Default inputs specify a 14-period ADX length, smoothing of 10, conventional MACD periods, and a one-unit stop value. Published settings use four-hour BTC/USDT futures bars over one year, but include no reported results. The source does not explain position sizing or establish robustness across markets, and the session defaults are framed in Eastern Time.

Key ideas

• Long and short signals require agreement between directional movement and MACD comparisons.
• The strategy maintains its current bias until the combined conditions indicate a reversal.
• New entries can be limited to specified days and hours, while exits are not similarly restricted.
• An absolute price stop is placed relative to the average entry price.
• The listed BTC futures backtest settings contain no performance statistics.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.