Dual MACD Strategy [Js.k] by Jasonkasei
By Jasonkasei
Performance Metrics
- Author: Jasonkasei
- Symbol: BINANCE:BTCUSDT.P
- Timeframe: 1 hour
- Net P&L: +428.92 USDT (+4.29%)
- Win Rate: 33.2%
- Profit Factor: 1.18
- Max Drawdown: 274.51 USDT (2.65%)
- Total Trades: 208
- Sharpe Ratio: −0.026
Description
Strategy OverviewThe Dual MACD Strategy leverages two MACD indicators with different parameters to generate buy and sell signals. By combining the trend-following properties of MACD with specific entry/exit criteria, this strategy aims to capture significant price movements while effectively managing risk.Entry and Exit ConditionsLong Entry: A buy signal is triggered when:The histogram of MACD1 crosses above zero.The histogram of MACD2 is positive and rising.Short Entry: A sell signal is triggered when:The histogram of MACD1 crosses below zero.The histogram of MACD2 is negative and declining.Risk ManagementStop Loss and Take Profit:Stop Loss is set at 1% below the entry price for long positions and 1% above the entry price for short positions.Take Profit is set at 1.5% above the entry price for long positions and 1.5% below the entry price for short positions.Position Sizing: Each trade risks a maximum of 10% of account equity, keeping potential losses manageable and in line with standard trading practices.Backtesting ResultsThe strategy is tested on BTCUSDT with a time frame of 1 hour, resulting in 200+ trades.The initial capital for backtesting is set to $10,000, with a realistic commission of 0.04% and a slippage of 2 ticks.ConclusionThis strategy is inspired by Dreadblitz's Double MACD Buy and Sell, as well as some YouTube videos. My purpose in redeveloping them into this strategy is to validate the practicality of the Double MACD. After multiple modifications, this is the final version. I believe its profitability is limited and may lead to losses; please do not use this strategy for live trading.