Specially if your new or not profitable as i was for many many years. MACD can overly simplify your life and make it “monkey proof” not saying u will make money necessarily but can maintain you within boundaries of basic rules to prevent full disasters. You got to use it i would say in multiple instruments though with equal position sixe. If u try to cherry pick the signals most likely u end up with the worse ones unless you got a better sense or idea on how to filter out
macd
- Thread starter notafool
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Specially if your new or not profitable as i was for many many years. MACD can overly simplify your life and make it “monkey proof” not saying u will make money necessarily but can maintain you within boundaries of basic rules to prevent full disasters. You got to use it i would say in multiple instruments though with equal position sixe. If u try to cherry pick the signals most likely u end up with the worse ones unless you got a better sense or idea on how to filter out
This is very true one. And MACD altho back testing is no bullet proof MACD tends to stick out with better results than others
take a look at SQ ans OSTK for example nearly every signal was profitable and those that were not didnt cost you much
all this is based on daily charts iam referring to
By the way i got code wrotten to backtest MACD in think script that i bought from someone to code it for me a while back if you like it i can share it
it does basic back testing p/l how much made lost if bought on signal and sold on signal
It sucks on hourly chart, too many signals and too often wrong
i did though in the past notice if you multiply its setting by 3 it works much better on intraday charts of anything less than daily
Laggy in what sense and what time frame? And compared to what? As in what can get u not laggy info?
Divergences tend to filter out some falsse signals but that doesnt happen often and fading the dignal can get you into an rai similar situation where you get killed
for example last signal on crude oil the sell signal was a false signal and one couldve detected that because there was a heavy divergence bUT the very same scenario took place when oil was at 20 and that sell signal took it down to 6.5
together or separate ? daily chart?