Forex Simple MACD Trend Following Strategy
Forex Simple MACD Trend Following Strategy;
Chart setup:
• Moving average set to period = 20.
• MACD(12,26,9).
• Time frame 15m.
Here is the system:
Rules for a Long Trade
1) Look for currency pair to be trading below the 20-period EMA and MACD to be
negative
2) Wait for price to cross above the 20-period EMA, make sure that MACD is either in the
process of crossing from negative to positive or have crossed into positive territory no
longer than 5 bars ago.
3) Go long 10 pips above the 20-period EMA
4) For aggressive trade, place stop at swing low on 5 minute chart. For conservative trade,
place stop 20 pips below 20-period EMA
5) Sell half of position at entry plus amount risked, move stop on second half to breakeven
6) Trail stop by higher of breakeven or 20-period EMA minus 15 pips
Rules for a Short Trade
1) Look for currency pair to be trading above the 20-period EMA and MACD to be positive
2) Wait for price to cross below the 20-period EMA, make sure that MACD is either in the process of crossing from positive to negative or have crossed into negative territory no longer than 5 bars ago
3) Go short 10 pips below the 20-period EMA
4) For aggressive trade, place stop at swing high on 5 minute chart. For conservative trade,
place stop 20 pips above 20-period EMA
5) Buy back half of position at entry minus amount risked, move stop on second half to
breakeven
6) Trail stop by lower of breakeven or 20-period EMA plus 15 pips
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex Simple MACD Trend Following Strategy?
- Download Forex Simple MACD Trend Following Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Load indicator on your chart
How to uninstall Forex Simple MACD Trend Following Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
