A simple backtesting with signals provided by the Macd.
Balance : 10k
Settings : 8-17-9
Lots : 0.1 fixed
Timeframe : H1
Pairs attached : EU
Test duration : 16 days
Results : 1.14%
Maximal Drawdown : 7.7%
Profit factor : 1.10
A simple backtesting with signals provided by the Macd.
Balance : 10k
Settings : 8-17-9
Lots : 0.1 fixed
Timeframe : H1
Pairs attached : EU
Test duration : 16 days
Results : 1.14%
Maximal Drawdown : 7.7%
Profit factor : 1.10
A simple backtesting with signals provided by the Macd.
Balance : 10k
Settings : 12-26-9 (default)
Lots : 0.1 fixed
Timeframe : H1
Pairs attached : EU
Test duration : 16 days
Results : 7.16%
Maximal Drawdown : 3.21%
Profit factor : 2.32
MACD is a horrible indicator to trade.
Testing on larger period than 16 days will show you a nice, downslope line.
It is good that you test your ideas on real backtesting.. I know many traders who still trade the MACD, because they cannot judge their results objectively.
MACD will always be a losing system because it is a classic lagging indicator !
so if its a classic lagging indicator and gives as a downward sloping equity curve, what happens if you reverse the system of the MACD?
Will we get an upward sloping curve??![]()
Lagging or not the MACD is an excellent indicator when used with other confirmations and the correct trading system. The MACD is my primary indicator and over the past 6 weeks testing a new strategy I've won 100 pips for every 1 pip lost. I don't care what anyone says, results speak 1000 words.
I don't want to break your spirit but 6 weeks are a very small sample for you to draw conclusions from. Trade for 6 years, in several pairs and then you could claim that MACD is a profitable indicator.
I know from my tests that it is losing. Of course, I could find some period of 6 weeks in which it will perform great, but at the end it does not prove anything.
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Isn't the inverted MACD one of the primary indicators in your trading system?