MACD Zero-Cross Trend Following with an EMA Price Filter

Summary

This strategy follows trend changes indicated by MACD. It calculates the difference between the MACD line and its signal line, then treats a cross of that difference above or below zero as a change in directional state. An optional EMA filter gates the resulting entries: with the filter enabled, the source checks whether the bar’s low is below the EMA for long entries or its high is above the EMA for short entries. Long and short trading can be enabled separately, and the defaults enable longs while disabling shorts. The listed MACD settings use the conventional fast, slow, and signal periods.

The document gives BTC/USDT futures backtest settings covering roughly a year, but supplies no reported performance metrics. It warns that MACD can lag and produce false signals in sideways markets, while an EMA filter can exclude trades. The source does not implement the stop-loss or take-profit measures suggested in the prose, and the filter logic is not a simple requirement that price remain above the EMA for longs or below it for shorts. Historical settings alone cannot demonstrate profitability or robustness.

Key ideas

• The difference between the MACD line and its signal line drives directional changes when it crosses zero.
• An optional EMA condition gates entries, using the bar’s low for long entries and high for short entries.
• Long and short directions can be enabled independently, with longs enabled and shorts disabled by default.
• The strategy can lag or generate false signals in choppy markets, and the EMA filter may remove valid opportunities.
• The source has no explicit stop-loss or take-profit logic, and the published backtest settings include no performance results.

Tags

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