MACD, Supertrend, and DEMA Alignment with Percentage Exits

Summary

This strategy requires three indicators to align before opening a position. A long signal occurs when the MACD histogram crosses above zero, the Supertrend direction is bullish, and the shorter double exponential moving average is above the longer one. A short signal uses the corresponding bearish conditions. The script uses standard MACD lengths of 12 and 26 with a 9-period signal average, Supertrend settings of 10 periods and a multiplier of 3, and DEMA lengths of 20 and 50.

Trades are opened only when the strategy has no position. The stated exit levels use a 2% stop and a 4% profit target measured from the stored entry price. The document provides indicator rules and source code, but no market, timeframe, backtest settings, or performance evidence. It also does not discuss transaction costs or whether the fixed percentage exits suit different assets and volatility regimes.

Key ideas

• A long entry requires a bullish MACD histogram cross, bullish Supertrend, and short DEMA above long DEMA.
• A short entry requires the corresponding bearish indicator alignment.
• The example uses MACD lengths of 12 and 26 with a 9-period signal average.
• The strategy specifies a 2% stop loss and a 4% take-profit level from entry.
• No backtest results or market-specific validation are provided.

Tags

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