ADX MACD Strategy

ADX MACD blends trend strength from the Average Directional Index with momentum shifts from MACD. When ADX is rising, breakouts have a higher chance of continuing, especially if MACD crosses in the same direction.

Testing indicates an average annual return of about 139%. It performs best in the stocks market.

The strategy trades those aligned signals and exits once ADX starts to weaken or MACD flips against the position.

A modest percent stop contains losses during choppy markets.

Details

• Entry Criteria: indicator signal
• Long/Short: Both
• Exit Criteria: stop-loss or opposite signal
• Stops: Yes, percent based
• Default Values:
  • CandleType = 15 minute
  • StopLoss = 2%
• Filters:
  • Category: Trend following
  • Direction: Both
  • Indicators: ADX, MACD
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural networks: No
  • Divergence: No
  • Risk level: Medium