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MACD Trading Strategy With 200 EMA
A winning trade makes $50k is this it?
Hey Friend!
Free bot of the week works as follows:
Strategy: Uses 200 EMA and MACD (default setting) crossover.
Buy signal: Market above 200 EMA and entry at MACD crossover (MACD line crosses above signal line) below level 0 of the histogram.
Sell signal: Market is below 200 EMA and entry at MACD crossover (MACD crosses below signal line)above level 0 of the histogram.
Target: Profit target should be greater than the risk for a single trade. Put a risk to reward of 1:2. Close 25% of profit at R:R 1:1 and move sl to break even (entry price).
The video source on YT has over 1.3M views.
Backtest Results:
On Boom 1000, the bot did not make profits, however, on the trades where money was made, the risk-to-reward ratio was working quite well
Backtest results
The strategy needs a way to filter false signals even further. Some observations on Boom 1000:
The trailing SL only works when the initial lot size is more than the minimum lot for Boom 1000. For example, when a trade is placed with an initial lot size of 0.2, we cannot close the partial 25% of the trade since Deriv doesn’t accept any volume below 0.2. I’ve made the lot size flexible on the Bot Input tab. Feel free to experiment!
The strategy doesn’t do well on raging markets despite having the 200MA to filter out trends.
You can download the free bot here. The instructions for loading the bot on a VPS are also included in the downloaded zip file.
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