Trading MACD Crossovers Calculated from Relative Strength

Summary

This strategy calculates relative strength as the current close divided by the highest high over a lookback, then applies MACD to that series. A positive MACD histogram opens a long position; a negative histogram closes it. The described approach focuses on long trades and includes a stop based on a percentage of entry price. Its money management rule adjusts order cash in steps when equity moves past fixed profit or loss thresholds.

The document explains the rationale for combining a longer-term price-strength measure with MACD momentum signals and lists parameter choices. It also provides Binance BTC-USDT futures backtest settings for a stated period, but reports no performance results, so it does not establish that the method is profitable. The source code sets the backtest range flag to true unconditionally, meaning the date limits do not actually constrain trades as written. Claims about reliable signals and risk control should therefore be treated cautiously; indicator errors, parameter sensitivity, execution costs, and the behavior of the sizing rules remain relevant limitations.

Key ideas

• Relative strength is calculated by comparing the current close with the highest high over a configurable lookback.
• MACD is applied to the relative-strength series, and a positive histogram triggers a long entry.
• A negative histogram closes the long position, while a percentage-based stop is submitted with the entry.
• Order cash changes in fixed increments as equity crosses profit or loss thresholds.
• The published backtest configuration gives no results, and the source leaves its date-range filter permanently enabled.

Tags

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