Mastering MACD: A Local Trader's Guide to the MACD Pattern Trader EA for MT4

If you're looking to enhance your trading strategy, the MACD Pattern Trader EA for MetaTrader 4 might just be what you need. You can check out the original strategy through this link:
Original Trade Strategy

This expert advisor (EA) was developed to evaluate the effectiveness of the trading strategy outlined by the author. For a detailed look at the EA and its description, you can find it in the latest issue of our journal:
Latest Journal Issue

Quick Overview of the EA's Algorithm:

• Time Frame: H4
• Trading Instrument: EUR/USD
• Volume: 1 lot
• Indicators: EMA7, EMA21, EMA359, SMA89, MACD (5,13,1)

Buy Signal Criteria:

• The MACD histogram must show a value below 0.0045.
• Once a maximum above 0.0045 is established, the histogram needs to reverse direction towards that maximum.
• Place a stop order 10 points below the last local maximum.
• Close 30% of your positions when the price is above the 21-period exponential moving average.
• Close half of your positions when the price hits between the 89-period simple moving average and the 365-period exponential moving average.
• Finally, close the remaining positions when the price reaches a significant resistance level.

Sell Signal Criteria:

• The MACD histogram must form a minimum above -0.0045.
• After establishing this minimum, the histogram must reverse direction towards it.
• Place a stop order 10 points above the last local maximum.
• Close 30% of your positions when the price is below the 21-period exponential moving average.
• Close half of your positions when the price reaches between the 89-period simple moving average and the 365-period exponential moving average.
• Finally, close the remaining positions when the price reaches a significant resistance level.

EA Testing Results:

Results after optimizing the parameters:

For a comprehensive analysis of this strategy and its performance with future quotes, check out our journal:
Full Analysis

p.s. All strategy variables can be adjusted in the external variables section. Feel free to experiment with parameters that suit intraday charts as well. Testing on ticks is advisable! If you have any suggestions for further development or questions about the EA, don’t hesitate to reach out!