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MACD Signal-Line Crossovers with Stop-Loss and Profit Targets

Article Strategy library · Author: Khanhtq26
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Summary

This trend-following system uses the standard MACD line and signal line, calculated from closing prices with 12, 26, and 9 periods. A cross above the signal line opens a long position; a cross below opens a short. Positions may close on the opposite crossover or through a stop loss, with an optional take-profit target. Users can select long-only, short-only, or both directions. The script plots the active stop and target levels.

The page identifies VN30F1M index futures as the intended market and includes source code, but offers no backtest results or other evidence of performance. Its fixed point-based stop and target settings may not adapt to different volatility conditions or instruments. The document also does not describe filters for ranging markets, position sizing beyond a fixed quantity, or transaction-cost assumptions. Treat it as a simple, inspectable rule set rather than a validated trading edge.

Key ideas

  • MACD and signal-line crossovers determine long and short entries.
  • An opposite crossover can close an open position.
  • Stop losses are defined in fixed points, with an optional fixed-point profit target.
  • The script offers long-only, short-only, and two-sided trading modes.
  • The material identifies VN30F1M futures as its intended application but provides no performance evidence.

Tags

FuturesTrend followingMomentumTechnical indicatorsRisk management

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