Author: Jordi Bassagañas Galisteo
When it comes to measuring the true power of traditional trading systems like MACD, things can get a bit tricky. Today, we're diving into the MACDWaterlineCrossExpectator, an Expert Advisor (EA) designed for MetaTrader 5, and how it can enhance your trading strategy.
How the EA Works
The rules for this EA are pretty straightforward:
- Buy: When the MACD signal crosses above the waterline.
- Sell: When the MACD signal crosses below the waterline.
This EA isn't just about buy and sell signals; it also incorporates a solid money management strategy. The goal here is to maintain a positive risk-to-reward ratio of 1 or less, giving you a mathematical edge in your trades.
Expert Settings
Here are the settings for the MACDWaterlineCrossExpectator EA that you can use:
| Expert: | MACDWaterlineCrossExpectator | |||||||||||
| Symbol: | EURUSD | |||||||||||
| Period: | M15 (2012.01.01 - 2012.12.30) | |||||||||||
| Inputs: | pair=EURUSD | |||||||||||
| timeframe=15 | ||||||||||||
| fastEMAPeriod=12 | ||||||||||||
| slowEMAPeriod=26 | ||||||||||||
| signalPeriod=9 | ||||||||||||
| stopLoss=300 | ||||||||||||
| size=0.10 | ||||||||||||
| riskBenefitRatio=3 | ||||||||||||
| Broker: | MetaQuotes Software Corp. | |||||||||||
| Currency: | USD | |||||||||||
| Initial Deposit: | 10,000.00 | |||||||||||
| Leverage: | 1:100 | |||||||||||
Visual Insights
Here are some visuals to guide your understanding:
Fig. 1. Balance
Fig. 2. Correlations
Fig. 3. Entries
Final Recommendations
There are plenty of inputs you can tweak while testing the MACDWaterlineCrossExpectator. Experiment with the risk-to-reward ratio, moving average periods, stop loss settings, and, most importantly, the trading symbol and timeframe. Run your tests, adjust the EA's parameters, monitor the outcomes, and draw your own conclusions.
Remember, the MACDWaterlineCrossExpectator.mq5 is designed primarily for educational purposes. Use it at your own risk!
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