MACD Breakout (C#)

MACD Breakout

The MACD Breakout strategy watches the MACD for sudden expansions. When readings jump beyond their normal range, price often starts a new move.

Testing indicates an average annual return of about 94%. It performs best in the stocks market.

A position opens once the indicator pierces a band derived from recent data and a deviation multiplier. Long and short trades are possible with a stop attached.

This system fits momentum traders seeking early breakouts. Trades close as the MACD falls back toward the mean. Defaults start with FastEmaPeriod = 12.

Details

• Entry Criteria: Indicator exceeds average by deviation multiplier.
• Long/Short: Both directions.
• Exit Criteria: Indicator reverts to average.
• Stops: Yes.
• Default Values:
  • FastEmaPeriod = 12
  • SlowEmaPeriod = 26
  • SignalPeriod = 9
  • SmaPeriod = 20
  • DeviationMultiplier = 2
  • StopLossPercent = 2
  • CandleType = TimeSpan.FromMinutes(5) Avg and StdDev are the average and the standard deviation of the last SmaPeriod MACD line values, the current one included. The stop is a fixed StopLossPercent of the entry price, watched between candles as well; 0 disables it. The bands are the average plus and minus DeviationMultiplier standard deviations: the MACD line above the upper band goes long and below the lower band goes short; a long closes once the MACD line is back below its average and a short once it is back above it. An entry signal against an open position reverses it.
• Filters:
  • Category: Breakout
  • Direction: Both
  • Indicators: MACD
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Short-term
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium