SMA and MACD Trend Entries with Fixed Risk-Reward Exits

Summary

This system uses a simple moving average to define directional bias and MACD to confirm momentum. It enters long when the selected price is above the average and MACD is positive and above its signal line; the short conditions reverse those tests. Stops are set using a fixed percentage buffer from the close, and profit targets are calculated from the stop distance using a preset risk-reward multiple. Positions are also closed when neither entry signal is active.

The supplied implementation includes defaults for the average length, risk-reward ratio, stop buffer, and whether open or close is used for the trend comparison. It plots recent support and resistance levels and delays plotted alerts, while the trade rules themselves use SMA and MACD conditions rather than explicit Al Brooks price-action patterns. Backtest settings identify DOGE/USDT on Binance over a short daily-data interval, but no return, drawdown, or trade statistics are provided. The document notes lag, sensitivity to parameters, and potential losses in ranging markets; its claims of robustness therefore remain unverified by the evidence shown.

Key ideas

• The moving average sets directional bias while MACD alignment supplies a momentum filter.
• Stops use a percentage buffer, and targets scale the stop distance by a chosen risk-reward ratio.
• Positions close when both directional entry signals are absent.
• The code implements indicator rules without explicit Al Brooks price-action conditions.
• Published backtest settings are provided, but performance results are not reported.

Tags

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