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This strategy generates trading signals based on the MACD indicator. The MACD indicator consists of three lines: the MACD line, SIGNAL line and histogram (HISTO) line. When the MACD line crosses above the SIGNAL line and turns positive, it generates a buy signal. When the MACD line crosses below the SIGNAL line and turns negative, it generates a sell signal.

- Calculate the MACD line, SIGNAL line and HISTO line.
- Identify crossover points between the MACD line and SIGNAL line to determine buy and sell signals.
- Use a 34-period EMA as support/resistance zone, go long only above EMA and go short only below EMA.
- Set stop loss and take profit to lock in profits.

Specifically, when the close price crosses above the 34-period EMA and the MACD line crosses above the SIGNAL line into positive territory, it indicates strong upside momentum, so we buy. When the close price crosses below the 34-period EMA and the MACD line crosses below the SIGNAL line into negative territory, it indicates strong downside momentum, so we sell.

- MACD indicator accurately identifies turns in price action with clear signals.
- Combining with EMA filter avoids false buy/sell signals.
- Stop loss and take profit controls per trade loss.

- MACD signals lag price action and may miss best entry/exit points. Can optimize parameters to shorten moving average periods.
- Single indicator prone to generating false signals. Can add other indicators like KDJ for filtration.
- No limit on number of trades, may lead to overtrading. Can set daily/weekly trade limits.

- Optimize MACD parameters to find best parameter combination.
- Add other indicator judgments to avoid false signals, e.g. MACD+KDJ, MACD+BOLL combinations.
- Implement trade frequency limits to prevent overtrading.
- Optimize stop loss/take profit strategy to improve risk/reward ratio.

This strategy identifies trading opportunities using the MACD indicator and filters signals using a 34-period EMA. It allows timely entries when new price trends start while controlling risk via stop loss/take profit. The strategy can be further refined via parameter optimization, adding other indicators etc. to improve profitability.

/*backtest start: 2024-01-19 00:00:00 end: 2024-02-18 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/ // © melihtuna //@version=2 strategy("Jim's MACD", overlay=true) Tendies = input(true, title="Check here for tendies") // === MACD Setup === [macdLine, signalLine, histLine] = macd(close, 12, 26, 9) //EMA ma = ema(close, 5) plot(ema(close,5)) //Entry if (close > ma and cross(macdLine,signalLine) and histLine> 0.4 and signalLine > 0 or histLine > 0 and signalLine > 0 ) strategy.entry("BUY", strategy.long) if(close < ma and cross(macdLine,signalLine) and histLine < -0.4 and signalLine < 0 or close < ma and histLine < 0 and signalLine < 0 ) strategy.entry("SELL", strategy.short) //Exit strategy.close("BUY", when = histLine < 0 ) strategy.close("SELL", when = histLine > 0 )

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