MACD Momentum Expert Advisor for Japanese Yen Pairs

0 327

MACD Momentum Expert Advisor was created by a companion of forexsystemsru.com forum programmers within the framework of the trading strategies testing project. The tactic was taken freely available on the Internet and showed excellent results in 100-200% profit. But let's start with the strategy.

Trading strategy

MACD Momentum trading strategy uses only two standard indicators to generate signals. The primary signal is given by the MACD indicator, but a position is opened only after it is confirmed by the Momentum indicator.

Input parameters

Currency pairs: pairs with Japanese yen
Timeframe: H4
Bidding time: any
Risk management: after calculating the stop-loss, choose such a volume of lot, that the risk was not more than 2-5% of the deposit per trade

Used indicators

MACD (12, 72, 9)
Momentum (14)

Trading signals

Buying

MACD histogram bars crossed the zero level from bottom to top.
MACD histogram bars crossed the signal line.
The Momentum indicator line has started to decline.

The position is opened after the close of the candle on which the Momentum indicator line started to decline.

For Sale

MACD histogram bars crossed the zero level from top to bottom.
MACD histogram bars crossed the signal line.
The Momentum indicator line has started to grow.

The position is opened after the close of the candle on which the Momentum indicator line started to grow.

Additional strategy conditions

if there is an open trade that has not been transferred to the breakeven level, it is recommended to ignore the following trading signals.

Setting Stop Loss and Take Profit

stop loss order is set at 50 pips. After the price passes 45 pips in the take profit direction, it is recommended to transfer the deal to breakeven and use the function trailing stop;
Take Profit order is set at a fixed size of 100 pips.

As you can see, a very simple strategy, but it requires a strong focus on the market, while the rules allow you to automate it. So let's try it.

MACD Momentum Strategy Trading Expert Advisor

MrGreen86, already known to our readers, who has already successfully automated several strategies on the traders' forum, took up the task of creating an Expert Advisor based on the MACD Momentum strategy forexsystemsru.com.

Strategy correction

Experimentally it was found out that the strategy signals are very often delayed, because the Momentum indicator does not give confirmations for opening a position. On this basis, for the implementation of the MACD Momentum trading robot, the rules of market entry were adjusted as follows:

Opening a buy deal

Momentum indicator line began to decline;
during the last 5 bars MACD histogram crossed the signal line from bottom to top or simply crossed the zero level from bottom to top.

Opening a deal for sale

the Momentum indicator line started to grow;
during the last 5 bars MACD histogram crossed the signal line from top to bottom or simply crossed the zero level from top to bottom.

Testing the author's rules

The initial testing of the MACD Momentum Expert Advisor was performed on CADJPY and AUDJPY currency pairs with a fixed spread of 15 pips and showed good results.

The testing took place in the company Tickmill >>

Testing results of MACD Momentum Expert Advisor on AUDJPY currency pair, H4 timeframe

Results of testing the MACD Momentum Expert Advisor on the currency pair CADJPY, H4 timeframe

NZDJPY

Given the high correlation coefficient between the Australian and New Zealand dollars, it was decided to test the Expert Advisor on the NZDJPY pair, which, as the results showed, turned out to be the right decision.

Testing of the Expert Advisor on other pairs with the Japanese yen, unfortunately, did not bring satisfactory results.

From H4 to H1

In the course of testing the MACD Momentum Expert Advisor, it was found out that trades are opened quite rarely in the set configuration. Therefore, it was decided to change the timeframe from H4 to H1, adjust stop loss and take profit parameters, but without changing the parameters of the used indicators.

The results of testing on currency pairs NZDJPY and CADJPY confirmed the expediency of using the Expert Advisor on the timeframe H1, but with the need to select the size of stop-loss and take-profit orders.

Results of testing the MACD Momentum Expert Advisor on the currency pair NZDJPY, timeframe H4

Test results on the currency pair NZDJPY, timeframe H1, stop-loss 70 pips, take-profit 75 pips

Test results on the currency pair CADJPY, timeframe H1, stop-loss 60 pips, take-profit 90 pips

The Stop Loss and Take Profit values specified in the H1 tests are not final. It is quite possible that the profitability of the MACD Momentum Expert Advisor can be increased by applying other values of these parameters.

It is worth paying attention to one important point. Many brokers have a much higher spread for cross rates than for regular currency pairs. Therefore, when choosing a broker, on whose account the MACD Momentum robot will be tested or traded, you should keep this in mind.

Results

In general, based on a simple strategy, a working MACD Momentum Expert Advisor has been created, which has good profitability and, what is not unimportant, is absolutely free.

The current version of the Expert Advisor is not final, so we invite all traders for further testing and optimization of parameters. It is quite possible that it is your set of settings that will increase the profitability of the Expert Advisor even more.

More advisors

Advisor AKA EA

Теги