MACD Contrarian System | Foreign exchange indicator download- MT4/MT5 resources
This is a system posted on another smaller forum.
I bring it here because I think it deserves a wider audience.
This is a very nice, low maintenance system that has been thoroughly tested.
There are an average of two transactions per month. Each transaction may last from a few hours to a few days.
Your account should earn a return of around 30% per year - even higher with compound interest.
It was developed by Tonymand, an excellent trader and all-around good guy. Tony has a great mind and always has time to answer questions. He is one of the bright spots in the Forex world.
I'll give the rules. Provide screenshots and publish indicators and templates.
I won't promote other forums here, but if you want to see the original post, search Google for MACD Contrarian Tonymand. You will find it. Tony provided a lot of background on system development as well as backtesting results.
Rules (Tony's words)
1. In a MACD crossover, trade 1 pip above/below the last completed 4-hour candle in the opposite direction of the crossover. Taking the short trade as an example, if the candle continues to rise without breaking the last low, the entry point will move to the bottom of the last completed candle. I'll post this screenshot to make it clearer
2. Stop loss is set to 60 and take profit is set to 250
3. If, while trading, another signal is generated in the same direction, take that signal (i.e. you can open multiple trades at the same time). However, any signals in the opposite direction are ignored.
4. Once the trade profit reaches 60 pips, the stop loss will be moved to the break-even point
Below I will post the correct MACD and a template with the settings.
The screenshot shows a very long setup. The logic is opposite for a bearish MACD crossover above 0. The sell stop is placed 1 pip below the previous bar's low.
I bring it here because I think it deserves a wider audience.
This is a very nice, low maintenance system that has been thoroughly tested.
There are an average of two transactions per month. Each transaction may last from a few hours to a few days.
Your account should earn a return of around 30% per year - even higher with compound interest.
It was developed by Tonymand, an excellent trader and all-around good guy. Tony has a great mind and always has time to answer questions. He is one of the bright spots in the Forex world.
I'll give the rules. Provide screenshots and publish indicators and templates.
I won't promote other forums here, but if you want to see the original post, search Google for MACD Contrarian Tonymand. You will find it. Tony provided a lot of background on system development as well as backtesting results.
Rules (Tony's words)
1. In a MACD crossover, trade 1 pip above/below the last completed 4-hour candle in the opposite direction of the crossover. Taking the short trade as an example, if the candle continues to rise without breaking the last low, the entry point will move to the bottom of the last completed candle. I'll post this screenshot to make it clearer
2. Stop loss is set to 60 and take profit is set to 250
3. If, while trading, another signal is generated in the same direction, take that signal (i.e. you can open multiple trades at the same time). However, any signals in the opposite direction are ignored.
4. Once the trade profit reaches 60 pips, the stop loss will be moved to the break-even point
Below I will post the correct MACD and a template with the settings.
The screenshot shows a very long setup. The logic is opposite for a bearish MACD crossover above 0. The sell stop is placed 1 pip below the previous bar's low.
Attachment to original post (2)
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