MACD Pullback Entries Filtered by Trend and ADX with ATR Risk Controls

Summary

This strategy takes MACD signal-line crosses only when they pass configurable filters. With the defaults, longs require price above a long-term exponential moving average and shorts require price below it; a zero-line rule seeks bullish crosses below zero and bearish crosses above zero. An ADX threshold is intended to screen out weaker directional conditions. Each filter can be disabled, and short entries and the trading date range can also be configured.

Trade management uses an ATR-based stop and a fixed reward-to-risk target, with an optional exit on an opposite MACD cross. Position size is calculated from a chosen fraction of equity and stop distance, then capped by a maximum position value. The script includes commission and slippage assumptions, but the document provides no strategy report or performance results. Sizing assumes a particular relationship between contract quantity and price movement, so the author cautions that forex and futures contract values need checking. Suggested evaluation practices include testing across symbols and settings and avoiding conclusions from small trade samples.

Key ideas

• MACD signal-line crosses are filtered by price relative to a trend EMA, an optional zero-line condition, and ADX.
• The zero-line rule seeks pullback entries by requiring bullish crosses below zero and bearish crosses above zero.
• Stops scale with ATR, while profit targets use a fixed multiple of the stop distance.
• Position size targets a fixed share of equity risk and is capped by a maximum position value.
• The document provides configuration guidance but no performance results, and sizing assumptions may not fit every contract.

Tags

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