MACD Crossover Rules for Trend Following

Summary

This strategy uses MACD crossovers to take trend-following positions. It compares a fast and a slow moving average, then smooths their difference into a signal line. A bullish crossover above zero triggers a long entry, while a bearish crossover below zero signals an exit or, in two-sided mode, a short entry. The stated defaults are 12, 26, and 9 periods, with options for long-only, short-only, or both directions.

The document describes the rules and parameter choices but provides no performance results. Its published backtest settings specify BTC/USDT futures over roughly a year, using daily bars with hourly base data; those settings alone do not establish profitability. The source also does not apply the declared date-window function to its entries. The strategy may lag turning points and produce repeated signals in sideways markets. The text suggests adding filters, tuning parameters, and using stop losses, but does not test those changes.

Key ideas

• MACD line and signal-line crossovers define the directional signals.
• The strategy enters long when the MACD line is above zero and above its signal line.
• A bearish signal below zero closes a long or opens a short, depending on the selected mode.
• The described approach can lag reversals and generate false signals in range-bound markets.
• Published backtest settings do not include performance evidence.

Tags

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