Combining MACD and Linear Regression Signals for Long-Only Trading
Summary
This configurable strategy combines MACD crossovers with linear regression trend measures to generate long entries and exits. The MACD can use SMA, EMA, WMA, or TEMA calculations. The regression component assesses slope and price relative to the fitted line, with selectable signal rules. When both entry indicators are enabled, the source requires both signals; if only one is enabled, that signal can trigger an entry. Exit settings likewise allow MACD and regression conditions to be selected, with combined settings requiring both. Percentage-based take-profit and stop-loss orders are also included.
The document publishes BTC/USDT Binance futures settings for an hourly test from November to December 2024, but reports no returns, drawdowns, or comparisons. It therefore provides no evidence that the indicator choices improve performance. The stated limitations include lag, false signals in ranging markets, sensitivity to parameters, and missed opportunities when both indicators must agree. The code implements long entries and exits rather than short trades.
Key ideas
- MACD calculation can use SMA, EMA, WMA, or TEMA smoothing.
- Linear regression slope and price relative to the fitted line provide configurable trend signals.
- When both entry indicators are enabled, the strategy requires their signals to agree; a single enabled indicator can act alone.
- Exit signals can also be configured from MACD and regression rules, alongside percentage-based profit and loss exits.
- The published hourly futures test has no reported performance results, and the document notes lag, ranging-market noise, and parameter sensitivity.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.