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This strategy is named **MACD Dual Moving Average Tracking Strategy**. It uses MACD indicator’s golden cross and death cross of dual moving averages as trading signals, combined with the previous day’s lowest price as the stop loss point to track the short-term price movement.

- Calculate fast EMA(close,5), slow EMA(close,8) and signal SMA(MACD,3)
- Define long signal: when fast MA crosses above slow MA
- Define short signal: when fast MA crosses below slow MA or closing price is lower than previous day’s lowest price
- Position size is initial capital 2000 USD divided by closing price
- Use short signal to close long position as stop loss

- Use MACD indicator to determine overbought and oversold zones, with dual MAs to form trading signals, avoiding false breakout
- Track short-term trends, timely stop loss
- Dynamic adjustment of position size avoids excessively large single loss

- MACD indicator has lagging effect, may miss short-term opportunities
- Dual MA trading signals may produce false signals
- Stop loss point is too aggressive, with high frequency of being stopped out

- Optimize MACD parameters combination to improve indicator sensitivity
- Add trend judgment to avoid false signals from market consolidation
- Combine with Volatility Index to assess market volatility, adjust stop loss point

This strategy uses the classic MACD dual moving average combination indicator to determine overbought and oversold zones, generating trading signals, while introducing dynamic position sizing and previous day’s lowest price as stop loss point design to capture short-term price fluctuations. The overall strategy logic is clear and easy to understand, worth further testing and optimization.

/*backtest start: 2023-12-10 00:00:00 end: 2023-12-13 02:00:00 period: 5m basePeriod: 1m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=2 // macd/cam v1 strategizing Chris Moody Macd indicator https://www.tradingview.com/script/OQx7vju0-MacD-Custom-Indicator-Multiple-Time-Frame-All-Available-Options/ // macd/cam v2 changing to macd 5,8,3 // macd/cam v2.1 // Sell when lower than previous day low. // Initial capital of $2k. Buy/sell quantity of initial capital / close price // Quitar short action // Note: custom 1-week resolution seems to put AMD at 80% profitable strategy(title="MACD/CAM 2.1", shorttitle="MACD/CAM 2.1") // source = close //get inputs from options useCurrentRes = input(true, title="Use Current Chart Resolution?") resCustom = input(title="Use Different Timeframe? Uncheck Box Above", defval="60") smd = input(true, title="Show MacD & Signal Line? Also Turn Off Dots Below") sd = input(true, title="Show Dots When MacD Crosses Signal Line?") sh = input(true, title="Show Histogram?") macd_colorChange = input(true,title="Change MacD Line Color-Signal Line Cross?") hist_colorChange = input(true,title="MacD Histogram 4 Colors?") venderLowerPrev = input(true,title="Vender cuando closing price < previous day low?") res = useCurrentRes ? timeframe.period : resCustom fastLength = input(5, minval=1), slowLength=input(8,minval=1) signalLength=input(3,minval=1) // find exponential moving average of price as x and fastLength var as y fastMA = ema(source, fastLength) slowMA = ema(source, slowLength) macd = fastMA - slowMA // simple moving average signal = sma(macd, signalLength) hist = macd - signal outMacD = request.security(syminfo.tickerid, res, macd) outSignal = request.security(syminfo.tickerid, res, signal) outHist = request.security(syminfo.tickerid, res, hist) histA_IsUp = outHist > outHist[1] and outHist > 0 histA_IsDown = outHist < outHist[1] and outHist > 0 histB_IsDown = outHist < outHist[1] and outHist <= 0 histB_IsUp = outHist > outHist[1] and outHist <= 0 //MacD Color Definitions macd_IsAbove = outMacD >= outSignal macd_IsBelow = outMacD < outSignal plot_color = hist_colorChange ? histA_IsUp ? aqua : histA_IsDown ? blue : histB_IsDown ? red : histB_IsUp ? maroon :yellow :gray macd_color = macd_colorChange ? macd_IsAbove ? lime : red : red signal_color = macd_colorChange ? macd_IsAbove ? yellow : yellow : lime circleYPosition = outSignal plot(smd and outMacD ? outMacD : na, title="MACD", color=macd_color, linewidth=4) plot(smd and outSignal ? outSignal : na, title="Signal Line", color=signal_color, style=line ,linewidth=2) plot(sh and outHist ? outHist : na, title="Histogram", color=plot_color, style=histogram, linewidth=4) circleCondition = sd and cross(outMacD, outSignal) // Determine long and short conditions longCondition = circleCondition and macd_color == lime redCircle = circleCondition and macd_color == red redCirclePrevLow = redCircle or low<low[1] shortCondition = redCircle if (venderLowerPrev) shortCondition = redCirclePrevLow strategy.initial_capital = 20000 // Set quantity to initial capital / closing price cantidad = strategy.initial_capital/close // Submit orders strategy.entry(id="long", long=true, qty=cantidad, when=longCondition) strategy.close(id="long", when=shortCondition) plot(circleCondition ? circleYPosition : na, title="Cross", style=cross, linewidth=10, color=macd_color) // hline(0, '0 Line', linestyle=solid, linewidth=2, color=white)

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