MACD Pullback Entries Filtered by Trend and ADX

Summary

This strategy uses MACD signal-line crosses as pullback entry triggers, filtered by a long-term price trend and ADX. With the filters enabled, long entries require price above its trend EMA, a bullish MACD cross below zero, and ADX above a threshold; shorts use the inverse trend and cross conditions, with the MACD cross above zero. ATR sets the stop distance, and a fixed reward-to-risk multiple defines the profit target. Position size is calculated from a fixed percentage of equity at risk, then capped by a maximum position value.

The source specifies commissions, slippage, no pyramiding, optional shorts, date limits, and optional exits on an opposite MACD cross. However, the document excerpt ends during trade-management code and provides no backtest settings or performance report. It therefore explains a testable rule set but does not establish that the filters improve results. Outcomes may vary with instrument, timeframe, transaction costs, and parameter choices.

Key ideas

• MACD signal-line crosses provide entries, with zero-line, trend EMA, and ADX filters.
• ATR determines stop distance, and a fixed reward-to-risk multiple sets the target.
• Position sizing risks a specified fraction of equity and caps exposure by a leverage limit.
• Shorting and exit-on-opposite-cross behavior can be toggled.
• The excerpt provides no backtest results, so the strategy's effectiveness is unverified.

Tags

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