Combining Normalized MACD, Volatility, and Bollinger Band Signals

Summary

This BTC/USDT futures strategy requires three kinds of signals to align before entering a trade. A normalized MACD component compares fast and slow moving averages, rescales their difference over a lookback window, and tracks recent crossovers. A volatility component measures the standard deviation of close-to-open price changes. A Bollinger Band component checks whether price crosses back through the middle band while remaining inside the outer band. Long entries require the recent bullish MACD state, an upward volatility threshold crossing, and a bullish middle-band reclaim; short entries use the corresponding bearish conditions.

The source also sets position quantity from a starting capital input and leverage, then calculates stop and target prices using recent bar extremes and a configurable profit multiple. The document publishes a one-month BTC/USDT futures backtest configuration, but reports no performance statistics. Its rules and settings alone do not establish profitability; the described configuration and order handling should be evaluated before drawing conclusions.

Key ideas

• Entries require agreement among normalized MACD, volatility, and Bollinger Band conditions.
• The MACD signal state is accepted only for a limited number of bars after a crossover.
• Volatility signals come from price changes crossing standard deviation thresholds.
• Stop and target levels use bar extremes and a configurable profit proportion.
• The published backtest configuration provides no reported performance results.

Tags

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