Simple MACD System – advice needed

• 01/17/2017 at 8:48 AM #21409
  Craig Larkin

  Hi Guys i am fairly new to all this so please forgive me if i have made any amateur mistakes.

  I have been messing around creating trading systems based on my Indicators and came across this –

  It will buy when the MACD is above 0 and Green line is above Red & Sell when below 0 and Red line above Green.

  I use a 10 Pip trailing stop and the time frame used on is daily

  When back testing i get unbelievable results  – for example

  in the past year on the Eur/Aud

  Number of trades – 169

  Winning Trades – 147

  Losing  – 22

  Total gain  – £10590

  this is based on £1 per a pip with a 2 pip spread

  What am i doing wrong?  surly this back test can not be right?

  The code is below

  //------------------------------------------------------------------------- // Definition of code parameters DEFPARAM CumulateOrders = False // Cumulating positions deactivated // Conditions to enter long positions indicator1 = MACDline[8,26,9](close) indicator2 = ExponentialAverage[9](MACDline[8,26,9](close)) c1 = (indicator1 > indicator2) indicator3 = MACDline[8,26,9](close) c2 = (indicator3 >= 0) IF c1 AND c2 THEN BUY 1 PERPOINT AT MARKET ENDIF // Conditions to enter short positions indicator4 = ExponentialAverage[9](MACDline[8,26,9](close)) indicator5 = MACDline[8,26,9](close) c3 = (indicator4 > indicator5) indicator6 = ExponentialAverage[9](MACDline[8,26,9](close)) c4 = (indicator6 < 0) IF c3 AND c4 THEN SELLSHORT 1 PERPOINT AT MARKET ENDIF // Stops and targets SET STOP pTRAILING 10

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

  //------------------------------------------------------------------------- // Definition of code parameters DEFPARAM CumulateOrders = False // Cumulating positions deactivated   // Conditions to enter long positions indicator1 = MACDline[8,26,9](close) indicator2 = ExponentialAverage[9](MACDline[8,26,9](close)) c1 = (indicator1 > indicator2)   indicator3 = MACDline[8,26,9](close) c2 = (indicator3 >= 0)   IF c1 AND c2 THEN BUY 1 PERPOINT AT MARKET ENDIF   // Conditions to enter short positions indicator4 = ExponentialAverage[9](MACDline[8,26,9](close)) indicator5 = MACDline[8,26,9](close) c3 = (indicator4 > indicator5)   indicator6 = ExponentialAverage[9](MACDline[8,26,9](close)) c4 = (indicator6 < 0)   IF c3 AND c4 THEN SELLSHORT 1 PERPOINT AT MARKET ENDIF   // Stops and targets SET STOP pTRAILING 10

   

  

  Craig Larkin

  Participant

  Topics: 2

  Replies: 0

  Been thanked: 0 times
  01/17/2017 at 9:32 AM #21416
  Nicolas

  >> Please update your country flag in your profile. Thank you 🙂 <<

  Hi Craig, your post was in the Library, I believe that my button is still not as clear as I thought .. 🙂

  I believe you made your backtest with PRT 10.2? This unbelievable result is due to what we call here the “0 bar” problem that have been solved with the new tick by tick backtest engine in version 10.3. In your strategy, the trailing stop give priority to takeprofit and not stoploss, so the whole strategy gain will always be superior to its loss.

  There are many topics and discussions about it here. I’m sorry but your backtest is not accurate.

  

  Nicolas

  Keymaster

  Topics: 81

  Replies: 20828

  Been thanked: 4739 times
• Author
  Posts