This strategy combines MACD, EMA and RSI indicators to implement trend following and reversal trading. It generates buy signals when MACD goes up through signal line and close price is above EMA; and sell signals when MACD falls below signal line and close price is below EMA to capture trends. Meanwhile, it trades reversals when RSI reaches overbought or oversold levels.
Calculate MACD diffs and EMA.
fastMA = ema(close, fast)
slowMA = ema(close, slow)
macd = fastMA - slowMA
signal = sma(macd, 9)
ema = ema(close, input(200))
Generate buy signal: MACD diff (macd - signal) goes above 0 and close price is above EMA.
delta = macd - signal
buy_entry= close>ema and delta > 0
Generate sell signal: MACD diff goes below 0 and close price is below EMA.
sell_entry = close<ema and delta<0
Trade reversals when RSI reaches overbought or oversold levels.
if (rsi > 70 or rsi < 30)
reversal := true
Solutions:
This strategy combines MACD, EMA and RSI to organically implement trend following and reversal trading. MACD judges trend directions, EMA filters noise, and RSI captures reversal points. Such multi-indicator combination can better determine market movements, improving profitability while reducing false signals. Parameter optimization and stop loss management could be further improved to reduce unnecessary losses. Overall, this is a solid strategy framework with potential for steady profits.
/*backtest start: 2023-11-17 00:00:00 end: 2023-12-17 00:00:00 period: 1h basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ // This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/ // © mbuthiacharles4 //Good with trending markets //@version=4 strategy("CHARL MACD EMA RSI") fast = 12, slow = 26 fastMA = ema(close, fast) slowMA = ema(close, slow) macd = fastMA - slowMA signal = sma(macd, 9) ema = ema(close, input(200)) rsi = rsi(close, input(14)) //when delta > 0 and close above ema buy delta = macd - signal buy_entry= close>ema and delta > 0 sell_entry = close<ema and delta<0 var bought = false var sold = false var reversal = false if (buy_entry and bought == false and rsi <= 70) strategy.entry("Buy",true , when=buy_entry) bought := true strategy.close("Buy",when= delta<0 or rsi > 70) if (delta<0 and bought==true) bought := false //handle sells if (sell_entry and sold == false and rsi >= 30) strategy.entry("Sell",false , when=sell_entry) sold := true strategy.close("Sell",when= delta>0 or rsi < 30) if (delta>0 and sold==true) sold := false if (rsi > 70 or rsi < 30) reversal := true placing = rsi > 70 ? high :low label.new(bar_index, placing, style=label.style_flag, color=color.blue, size=size.tiny) if (reversal == true) if (rsi < 70 and sold == false and delta < 0) strategy.entry("Sell",false , when= delta < 0) sold := true reversal := false else if (rsi > 30 and bought == false and delta > 0) strategy.entry("Buy",true , when= delta > 0) bought := true reversal := false