MACD Zero Crossings with Trend Filters and Configurable Exits

Summary

This configurable strategy trades MACD momentum signals while offering optional trend filters based on moving averages, ADX, or Parabolic SAR. Its core trigger is the MACD histogram crossing zero. Users can select long, short, or both directions, and choose ATR- or SAR-based trailing stops, ATR- or percentage-based profit targets, or timed exits. The document also describes regular and hidden divergence displays as additional analytical context. Published defaults include MACD lengths of 12, 26, and 9, plus a 50-period trend moving average.

The material explains the strategy components and parameter choices but gives no backtest performance or evidence that the filters improve returns. It cautions that unsuitable stop, target, and trend parameters may cause premature exits or misread market direction; timed exits can close losing trades, and sudden events can invalidate trend signals. The published backtest setup is for BTC/USDT futures on hourly bars over one month. The many configurable choices invite testing, but optimization on historical data may not generalize to future markets.

Key ideas

• The primary entry signal comes from the MACD histogram crossing the zero line.
• Optional MA, ADX, and SAR filters can condition trades on the broader trend.
• Users can configure trailing stops, profit targets, and timed exits.
• Divergence displays provide context but are not shown as evidence of predictive performance.
• The document provides a backtest configuration without reporting results.

Tags

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