MACD Contrarian System

Here is a system that is posted at another, smaller, forum.
I'm bringing it here because I think it deserves a wider audience.
It is a very good, low maintenance system that has been thoroughly tested.
It has an average of two trades a month. Each trade may last from a few hours to several days.
It should return around 30% a year on your account- more with compounding.

It was developed by Tonymand, an excellent trader and an all around good guy. Tony has a great mind and always has time to answer questions. He's one of the bright spots of the forex community.

I will give the rules. Provide a screenshot and post an indicator and template.

I don't promote other forums on here, but if you want to view the original thread, do a Google on MACD Contrarian Tonymand. You'll find it. Tony provides a lot of background for the system development as well as backtesting results.

RULES (in Tony's words)

1. On a MACD cross enter the trade 1 pip above/below the last completed 4 hr candle in the direction opposite the cross. Taking a short trade as an example if the candles continue to move up without breaking the last low the entry is moved to the bottom of the last completed candle. I will post screen shots of this to make it clearer

2. Stop is set at 60, TP at 250

3. If while in the trade another signal is generated in the same direction this is taken (ie you can have more than one trade open at the same time). However any signal in the opposite direction is ignored.

4. Once a trade has moved to a profit of 60 pips the stop is moved to break even

Below I will post the proper MACD along with a template that contains the settings.

The screenshot shows a long setup. The logic is reversed for a short- MACD crosses above 0. Sell stops are placed 1 pip below the previous bar's low.

Thanks for bringing this to our attention billbss!

I'll certainly have a look, as a good guy of these forums who always asks appropriate questions I'm sure this will have it's merit!!

Is this system purely for use on EUR/USD as in your example?

pn

Right- EUR/USD only.

maybe this will work, like to say "sell when everybody is too much afraid of sell, and cover when people start to sell"

Agreed! Thank you Bill for this system and your contributions and questions elsewhere!

Glen

I will make feww tests with this one, thank you

If the EUR/USD goes down much more we'll probably be getting a long trade this week.
The last one was last week and made 250 pips.