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MACD 6–40–6 on DAX

Updated: Jul 27, 2024

A Classic MACD Strategy with Custom Settings for DAX 40


The Idea

This is a classic crossover strategy, that enters long when the MACD histogram crosses the 0-line. The quirk here is that the settings are changed, to make the fast moving average faster, and the slow moving average slower. The position is held until momentum starts to fall, indicated by a down-tick in the MACD.



Setup for Backtest

Market: Germany 40 (DAX 40)

Contract: 1 € per point

Broker: IG

Testing environment: ProRealtime 12

Timeframe: Daily

Time zone: CET

No fees and commissions are included.


Result

Total gain: 13 915.1 €

Average gain: 29.5€

Total trades: 472

Winners: 275

Losers: 195

Breakeven: 2

Max drawdown: 1 379.5 €

Risk/reward ratio: 1.4

Total time in the market: 22.0 %

Average time in the market: 4 days, 3 hours

CAGR (10 000 € in starting capital): 2.52 %


Backtest Results

Entry Conditions

  1. MACD crosses over 0.

  2. Close is above its 5-day exponential moving average.


Exit Conditions

  1. Sell when:

    1. MACD starts falling,

    2. or after 20 trading days.


Code

ProRealTime


FAQ

Q: Am I free to use this strategy however I want?

A: Sure! But we're happy if you refer to our website and keep the creator's name in the code.


Q: I'm using another platform, can you write the code in another language?

A: No, sorry. We might add code in more languages later to the website, but until then, we recommend you try ChatGPT or something similar to help you rewrite it.


Q: Why does my backtest look different when I run the code?

A: The strategy might give different backtest results for several reasons, like added spread or fees, the wrong time-zone settings, or that you're using another type of contract.


Q: Will I make money if I run this strategy live?

A: We don't know. We're not financial advisors, we're just traders sharing our ideas.



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© 2024 by Algomatic Trading AB.     ⏐     Terms & Conditions    ⏐    F. A .Q

Disclaimer: Algomatic Trading is not a financial advisor, and takes no responsibility for the results of your trading. All content on this page should be seen as inspiration, not advice. Always do your own testing before trading any system, and don't risk money you can't afford to lose. Please Read Full Disclaimer Here

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