Multi-Timeframe MACD Breakout and Liquidity-Grabbing Strategy
Summary
This one-hour strategy combines four-hour trend filters with local momentum and recent price structure. Longs require price above the higher-timeframe EMA and bullish MACD alignment, plus a bullish one-hour MACD and either a recent-high breakout or a rebound after probing a prior low. Shorts use the inverse conditions, including a break below recent lows or rejection after testing a prior high. A configurable UTC time window limits when signals can occur.
Stops are placed at a multiple of ATR, with targets set from a risk-reward ratio; the source defaults to risking a position size equal to 10% of equity. The document describes the rules and potential refinements, but gives no performance results. It flags false breakouts, lagging MACD signals, fixed targets, and missing volume confirmation as limitations. The supplied backtest settings use ETH perpetual futures, though the strategy title references a different instrument, and the stated one-hour logic differs from the published two-hour test period. Results therefore cannot be inferred from the description or settings alone.
Key ideas
- Higher-timeframe EMA and MACD alignment set the permitted trade direction.
- One-hour MACD confirms local momentum before a trade is considered.
- Entries use recent breakouts or reversals after a test of prior highs or lows.
- ATR sets stop distance, while a chosen risk-reward ratio determines the target.
- False moves, indicator lag, and untested volume filters are important limitations.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.