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MACD Hook on Gold

Updated: Oct 11, 2024

A Simple MACD Strategy for Gold


The Idea

This strategy uses two parts of the MACD indicator to look for an uptick in momentum. The MACD line above 0 indicates an overall momentum, and with that in place, the buy signal is given when the histogram forms a "hook". Additionally, the short-term trend is confirmed by a Hull Moving Average.



Setup for Backtest

Market: XAUUSD (Gold)

Contract: 1 € per point

Broker: IG

Testing environment: ProRealtime 12

Timeframe: Daily

Time zone: CET

No fees and commissions are included.


Result

Total gain: 1 616.6 €

Average gain: 6.2 €

Total trades: 261

Winners: 185

Losers: 74

Breakeven: 2

Max drawdown: 164.3 €

Risk/reward ratio: 0.9

Total time in the market: 17.3 %

Average time in the market: 5 days, 20 hours

CAGR (10 000 € in starting capital): 0.43 %


Backtest Results

Entry Conditions

  1. MACD line is over 0

  2. MACD histogram is up

  3. MACD histogram of previous bar is down

  4. 15 Period Hull Average is sloping upwards


Exit Conditions

  1. Sell after:

    1. Three bullish days in a row,

    2. or 10 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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