Idea Contributor: Yuri, Code Author: barabashkakvn.
The MAMACD system utilizes two key iMA (Moving Average) indicators with periods of 85 and 75, calculated using the Low prices, while a third iMA with a period of 5 is based on Close prices.
A trade is triggered when the fast iMA (period 5) crosses above both slow iMAs. For an up trade, it's essential that the MACD is positioned above zero or is showing upward momentum.
Visually, having two MAs is crucial for effective trading. We set a modest take profit target of 15-20 points, which can vary based on currency volatility. Sure, some might argue that’s a small gain, but when you’re trading larger lot sizes across various pairs, those small wins can add up significantly. With a stop loss set at 10-15 points, you’ll find that it rarely gets hit.
Let's take a look at the testing results over the past year (from 01 January 2017 to 31 October 2017) on the M15 timeframe:
| Symbol | Pass | Result | Profit | Expected Payoff | Profit Factor | Recovery Factor | Sharpe Ratio | Custom | Equity DD % | Trades |
|---|---|---|---|---|---|---|---|---|---|---|
| USDJPY | 3 | 3,247.67 | 247.67 | 0.48 | 1.07 | 1.25 | 0.04 | 0 | 6.60 | 521 |
| EURJPY | 14 | 2,610.75 | -389.25 | -0.69 | 0.90 | -0.65 | -0.05 | 0 | 19.56 | 563 |
| EURGBP | 11 | 2,566.31 | -433.69 | -0.86 | 0.92 | -0.63 | -0.04 | 0 | 22.42 | 506 |
| EURUSD | 0 | 2,482.42 | -517.58 | -0.93 | 0.89 | -0.66 | -0.06 | 0 | 25.07 | 557 |
| AUDUSD | 5 | 2,468.08 | -531.92 | -0.96 | 0.88 | -0.66 | -0.06 | 0 | 26.54 | 554 |
| USDCAD | 4 | 2,250.59 | -749.41 | -1.25 | 0.81 | -0.98 | -0.10 | 0 | 25.47 | 601 |
| GBPUSD | 1 | 2,001.58 | -998.42 | -1.70 | 0.80 | -0.84 | -0.11 | 0 | 38.63 | 586 |
| EURCHF | 13 | 1,985.18 | -1,014.82 | -2.22 | 0.76 | -0.91 | -0.12 | 0 | 37.14 | 458 |
| EURCAD | 16 | 1,791.18 | -1,208.82 | -2.12 | 0.71 | -0.88 | -0.15 | 0 | 45.92 | 569 |
| USDCHF | 2 | 1,790.78 | -1,209.22 | -2.13 | 0.76 | -0.91 | -0.13 | 0 | 43.78 | 568 |
| EURAUD | 12 | 1,678.28 | -1,321.72 | -2.22 | 0.70 | -0.88 | -0.16 | 0 | 49.82 | 596 |
| AUDJPY | 9 | 1,531.42 | -1,468.58 | -2.57 | 0.70 | -0.99 | -0.17 | 0 | 49.66 | 572 |
| CHFJPY | 10 | 1,493.13 | -1,506.87 | -2.29 | 0.73 | -0.98 | -0.15 | 0 | 51.05 | 658 |
| AUDCHF | 8 | 1,432.25 | -1,567.75 | -3.02 | 0.70 | -0.94 | -0.15 | 0 | 55.85 | 519 |
| CADCHF | 19 | 1,300.63 | -1,699.37 | -3.41 | 0.67 | -0.94 | -0.17 | 0 | 60.54 | 499 |
| AUDCAD | 7 | 1,142.15 | -1,857.85 | -3.32 | 0.60 | -0.97 | -0.22 | 0 | 63.60 | 560 |
| GBPJPY | 18 | 865.69 | -2,134.31 | -3.43 | 0.63 | -1.00 | -0.20 | 0 | 71.21 | 622 |
| GBPCHF | 17 | 122.78 | -2,877.22 | -5.22 | 0.55 | -1.00 | -0.17 | 0 | 95.91 | 551 |
| EURNZD | 15 | 100.52 | -2,899.48 | -6.50 | 0.39 | -1.00 | -0.27 | 0 | 96.65 | 446 |
| AUDNZD | 6 | 70.66 | -2,929.34 | -5.28 | 0.43 | -1.00 | -0.23 | 0 | 97.64 | 555 |
As you can see, the only currency pair that yielded a positive result was USDJPY.
Now, let's review the performance results from the last year (from 01 January 2017 to 31 October 2017) on the H1 timeframe:
| Symbol | Pass | Result | Profit | Expected Payoff | Profit Factor | Recovery Factor | Sharpe Ratio | Custom | Equity DD % | Trades |
|---|---|---|---|---|---|---|---|---|---|---|
| USDCAD | 4 | 3,142.27 | 142.27 | 0.97 | 1.18 | 0.98 | 0.08 | 0 | 4.80 | 146 |
| EURUSD | 0 | 3,114.56 | 114.56 | 0.83 | 1.12 | 0.57 | 0.06 | 0 | 6.56 | 138 |
| AUDJPY | 9 | 3,024.26 | 24.26 | 0.17 | 1.02 | 0.17 | 0.01 | 0 | 4.55 | 139 |
| AUDCHF | 8 | 3,009.49 | 9.49 | 0.07 | 1.01 | 0.04 | 0.01 | 0 | 8.35 | 140 |
| EURJPY | 14 | 2,955.84 | -44.16 | -0.33 | 0.95 | -0.21 | -0.02 | 0 | 6.99 | 133 |
| USDCHF | 2 | 2,815.92 | -184.08 | -1.30 | 0.85 | -0.64 | -0.08 | 0 | 9.29 | 142 |
| USDJPY | 3 | 2,815.05 | -184.95 | -1.18 | 0.84 | -0.61 | -0.08 | 0 | 10.00 | 157 |
| EURAUD | 12 | 2,717.65 | -282.35 | -1.78 | 0.75 | -0.64 | -0.13 | 0 | 14.57 | 159 |
| AUDUSD | 5 | 2,669.29 | -330.71 | -2.09 | 0.76 | -0.68 | -0.13 | 0 | 16.25 | 158 |
| EURCAD | 16 | 2,627.66 | -372.34 | -2.47 | 0.67 | -0.85 | -0.20 | 0 | 14.45 | 151 |
| GBPCHF | 17 | 2,622.02 | -377.98 | -3.20 | 0.69 | -0.75 | -0.18 | 0 | 16.80 | 118 |
| GBPUSD | 1 | 2,620.28 | -379.72 | -2.47 | 0.73 | -0.72 | -0.15 | 0 | 17.17 | 154 |
| EURGBP | 11 | 2,566.81 | -433.19 | -3.09 | 0.73 | -0.81 | -0.15 | 0 | 17.65 | 140 |
| AUDCAD | 7 | 2,508.89 | -491.11 | -2.98 | 0.63 | -0.89 | -0.22 | 0 | 18.29 | 165 |
| CADCHF | 19 | 2,500.84 | -499.16 | -3.42 | 0.67 | -0.84 | -0.19 | 0 | 19.67 | 146 |
| GBPJPY | 18 | 2,360.00 | -640.00 | -4.74 | 0.52 | -0.99 | -0.32 | 0 | 21.51 | 135 |
| AUDNZD | 6 | 2,343.57 | -656.43 | -4.03 | 0.53 | -0.92 | -0.31 | 0 | 23.87 | 163 |
The takeaway? The MAMACD system shows promise, but results can vary widely by currency pair. Always do your due diligence and consider testing on a demo account before going live!
Comments 0