If you're looking to elevate your trading game, the MACD Double Peak/Double Trough strategy is worth your attention.
You can find the original strategy here.
This Expert Advisor (EA) was developed to test the effectiveness of the trading strategy outlined by its creator. For detailed results and an in-depth EA description, check out Issue 19 of our journal, which you can download from our website.
Overview of the Strategy:
1. Timeframe: H4
2. Symbol: EURUSD
3. Volume: 0.1 lot
4. Indicators: EMA7, EMA21, EMA359, SMA89, MACD (5, 13, 1)
Finding a Buy Signal:
1. The MACD histogram should form a minimum below -0.0045.
2. Once this minimum is established, the histogram must create a higher minimum below -0.0045.
3. Place the stop order 10 points below the last local minimum.
4. Close 30% of the position when the price moves above the 21-period exponential average.
5. Close half of the position when the price reaches the range between the 89-period simple moving average and the 365-period exponential average.
6. Finally, close the remaining volume when the price hits a resistance level.
Finding a Sell Signal:
1. The MACD histogram should form a maximum above 0.0045.
2. After this maximum, the histogram must create a lower maximum above 0.0045.
3. Set the stop order 10 points above the last local maximum.
4. Close 30% of the position when the price dips below the 21-period exponential average.
5. Close half of the position when the price reaches the range between the 89-period simple moving average and the 365-period exponential average.
6. Finally, close the remaining volume when the price hits a resistance level.
Testing the EA with Standard Parameters:
Here's the result after optimizing the parameters:
The forward testing yielded solid results, even on smaller timeframes.
This EA comes with default pattern parameters, but you can download an enhanced version with customizable and optimizable parameters, including adaptive Take Profit and Stop Loss levels, from our journal.
**Important:** Keep in mind that different brokers have varying quoting methods, so results using our parameters can differ across platforms.
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