Simple MACD System - Make 100 Pips a Week! | Forex Factory

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Simple MACD System - Make 100 Pips a Week!

  • #1
  • First Post: Aug 22, 2008 8:32am Aug 22, 2008 8:32am
I have been studying MACD on Hourly Chart for some years now,
But only recently developed two systems, One I am posting here for the FF community and for the other I will post the Weekly signal on another thread in this forum.

I would love to get feedback on this, Is this a common strategy ? Or is it unique? Has anyone done this before ? How much can I expect to make in the long run ..?

Any improvements to this ? Suggestions are highly welcome!

Setup -
Hourly Chart
GBPUSD
MACD ( See attached file for settings 12, 26, 9)


Here is the System ,

I only look for reversals in price , That is If the trend is UP then I will wait and enter in a Sell Signal for this System . If the trend is down then I will enter in a Buy Signal only.

Buy Signal : MACD Fast crosses over MACD Signal
Sell Signal : MACD Signal Line Crosses over MACD Fast Line

What to look out for!

First :

We need a confirmation in the form of a One hour Bull candle after the Buy Signal. In case of a sell Signal we look for a Bear candle after the crossover.

Second:

We need to make sure that the Crossover is valid ( That MACD Fast is above MACD Signal for a Buy Signal and MACD Signal Line is Above MACD Fast Line for a Sell Signal . )

Third:

We need to enter the trade at the close of the candle which confirms the Signal.

Two ways to trade this system
A) Take Profit Limit 30Pips , Stop loss of 125 Pips
B) No Profit Limit / No stop Loss for those with high risk appetite

Fourth :

We mandatory close all trades at the end of six hourly candles If trade is still open.

I have attached a chart with Type B Trade ! Please feel free to reply and post comments / suggestions/ critique ( healthy ) .

Regards,
FxPundit
Attached Image(s) (click to enlarge)
Click to Enlarge Name: temps macd.gif Size: 103 KB
Click to Enlarge Name: Chart.gif Size: 193 KB
BCom, MS, MBA, CPA
  • #2
  • Aug 22, 2008 8:45am Aug 22, 2008 8:45am
A stop loss 4 times greater than the take profit target presumably means your system has to be at least 80% successful to make any money, has this been backtested?

Andy
  • #3
  • Sep 1, 2008 11:53am Sep 1, 2008 11:53am
Quoting Andy B
A stop loss 4 times greater than the take profit target presumably means your system has to be at least 80% successful to make any money, has this been backtested?

Andy
I am as certain this method will lose money as I am the Earth isn't flat.

DITTO what Andy points out here. Actually with a 30 pip profit target and 125 pip stop loss, 80% winning trades loses money. (4x30 = 120) (1 x 125 = 125) 120 profit minus 125 loss = -5 pips with 80% winners.

Read some more books .......alot more books. Seriously, no sarcasm intended.
  • #4
  • Sep 1, 2008 12:31pm Sep 1, 2008 12:31pm
I have to agree with Andy and ftraderx that the MM side of things needs looking at.

Have you read any TA Books like Technical Analysis Explained Martin Pring.

With the hourly TF you can receive quite a few false signals.

Have checked out the MACD 4hr Thread
it's Bloody Good.

How long have you been trading this.

anyway JM2C
  • #5
  • Sep 2, 2008 8:06am Sep 2, 2008 8:06am
Wow you have been studying for years to come up with a system that will lose money?
Man I could do that in 10 seconds. Just buy and close every 10 seconds and give the spread to your broker.
  • #6
  • Sep 8, 2008 3:30am Sep 8, 2008 3:30am
For e.g. Look at the six hr time frame I have mentioned, You will see that if the position has not made you money in the first five hrs then in the sixth and seventh hour of opening the position you will see that the price has returned very close to the opening price of the trade ! ( So in effect the loss is only 5-10 pips which is 33% of the take profit target !

So in effect even though the stop loss is 4 times the take profit target , you dont lose that much if you stay in the game.

I will post an chart explaining what I mean soon.
BCom, MS, MBA, CPA
  • #7
  • Sep 8, 2008 4:31am Sep 8, 2008 4:31am
I'm curious to see some charts, I don't want to talk you down but for what I understand you are looking for counter-trend trade signaled by a lagging indicators, with a R:R of 4:1?
  • #8
  • Sep 8, 2008 5:39am Sep 8, 2008 5:39am
Quoting FxPundit
For e.g. Look at the six hr time frame I have mentioned, You will see that if the position has not made you money in the first five hrs then in the sixth and seventh hour of opening the position you will see that the price has returned very close to the opening price of the trade ! ( So in effect the loss is only 5-10 pips which is 33% of the take profit target !

So in effect even though the stop loss is 4 times the take profit target , you dont lose that much if you stay in the game.

I will post an chart explaining what I mean soon.
So what? If your stop is hit your money is gone and with that R:R ratio it's very unlikly that you'll make money the longrun.
  • #9
  • Sep 8, 2008 5:44am Sep 8, 2008 5:44am
no way with that R:R ratio
Twitter: @forexpokerpro
  • #10
  • Sep 8, 2008 6:30am Sep 8, 2008 6:30am
Quoting FxPundit
I have been studying MACD on Hourly Chart for some years now,
But only recently developed two systems, One I am posting here for the FF community and for the other I will post the Weekly signal on another thread in this forum.

I would love to get feedback on this, Is this a common strategy ? Or is it unique? Has anyone done this before ? How much can I expect to make in the long run ..?

Any improvements to this ? Suggestions are highly welcome!

Setup -
Hourly Chart
GBPUSD
MACD ( See attached file for settings 12, 26, 9)


Here is the System ,

I only look for reversals in price , That is If the trend is UP then I will wait and enter in a Sell Signal for this System . If the trend is down then I will enter in a Buy Signal only.

Buy Signal : MACD Fast crosses over MACD Signal
Sell Signal : MACD Signal Line Crosses over MACD Fast Line

What to look out for!

First :

We need a confirmation in the form of a One hour Bull candle after the Buy Signal. In case of a sell Signal we look for a Bear candle after the crossover.

Second:

We need to make sure that the Crossover is valid ( That MACD Fast is above MACD Signal for a Buy Signal and MACD Signal Line is Above MACD Fast Line for a Sell Signal . )

Third:

We need to enter the trade at the close of the candle which confirms the Signal.

Two ways to trade this system
A) Take Profit Limit 30Pips , Stop loss of 125 Pips
B) No Profit Limit / No stop Loss for those with high risk appetite

Fourth :

We mandatory close all trades at the end of six hourly candles If trade is still open.

I have attached a chart with Type B Trade ! Please feel free to reply and post comments / suggestions/ critique ( healthy ) .

Regards,
FxPundit
In a fast moving market like the euro Vs $$ of late taking counter trends is nuts! you will be long as the counter starts to fall again. 150stops are very likely u would not have a account for to long.

what about going with the trend add a filter. now this MACD cross over also has a real weakness, choppy markets. In that situation due to the lag you will enter and the market will turn on you then at the oppersite side same signal same prob.

Good luck demo it's guts out before u commit real cash.

Cheers
  • #11
  • Sep 11, 2008 8:47am Sep 11, 2008 8:47am
The inherent problem lies all here, there is no reason to
even look at any other aspect.

"Two ways to trade this system
A) Take Profit Limit 30Pips , Stop loss of 125 Pips
B) No Profit Limit / No stop Loss for those with high risk appetit"

A is problematic enough yet you recommend B as well? A is dangerous and B is suicidal. Backwards risk/reward ratio is not a great way to go. Don't buck the rules set up by years and years of statistics that came from successful traders that came before you in stocks, futures, and fx. You will fail. And you will arbitrarily close all trades at 6th candlemark that goes against you? Then get ready to lose over 90% of your trades and you will. You hit couple of stop/loss and close out couple of trades with your parameters and your account would probably tither tother on being blown out altogether. The assumption that you will somehow make it up by staying in the game is another dangerous notion. If you reverse the risk/reward to proper ration, perhaps then it may have some chance.
  • #12
  • Dec 6, 2009 9:26am Dec 6, 2009 9:26am
http://cdn.forexfactory.com/attachme...1&d=1219411873

This system looks like you just put up a chart and found a condition which met your "requirements." If you think trading will be easy like that you have another 10 years until you add to your account. Keep plugging away!

  • #13
  • Jan 11, 2010 9:30pm Jan 11, 2010 9:30pm
Quoting fxcatty
http://cdn.forexfactory.com/attachme...1&d=1219411873

This system looks like you just put up a chart and found a condition which met your "requirements." If you think trading will be easy like that you have another 10 years until you add to your account. Keep plugging away!

hi, this is my very 1st post here. So a worm welcome.
I tried this strategy and it works very good if u look macd cross in 1hr chart and take position on 5mnts chart just after 1st like candle on the direction with stoploss of recent swing high/low and risk:reward=1:3
all the best
  • #14
  • Sep 15, 2010 5:50am Sep 15, 2010 5:50am
Quoting FxPundit
I have been studying MACD on Hourly Chart for some years now,
But only recently developed two systems, One I am posting here for the FF community and for the other I will post the Weekly signal on another thread in this forum.

I would love to get feedback on this, Is this a common strategy ? Or is it unique? Has anyone done this before ? How much can I expect to make in the long run ..?

Any improvements to this ? Suggestions are highly welcome!

Setup -
Hourly Chart
GBPUSD
MACD ( See attached file for settings 12, 26, 9)


Here is the...

hi

does this still work ?
  • #15
  • Sep 15, 2010 6:17am Sep 15, 2010 6:17am
Quoting whatfx
hi

does this still work ?
These older threads have largely been abandoned. If you see some value here for yourself, then put it to use and test it.
  • #16
  • Last Post: Feb 5, 2011 11:43pm Feb 5, 2011 11:43pm
Hello friends.
I have started a thread about making minimum 100 pips a week, so since this thread is dead and if you're still interested you can keep an eye on my journal and see how far I get.
Lybi lydey, lybi vragov.
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