Macd XYZ
- Experts
- Nezir Hyka
- Version: 1.2
- Activations: 5
Strategy Overview
The strategy is based on detecting momentum shifts through the Moving Average Convergence Divergence (MACD) indicator, specifically the relationship between the MACD main line and its signal line. It operates using a classic crossover approach for entries and a reversal confirmation for exits.
1. Entry Logic
A trade is opened when a clear MACD crossover occurs:
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Buy Entry:
The MACD main line crosses above the signal line, indicating a bullish momentum shift. -
Sell Entry:
The MACD main line crosses below the signal line, signaling bearish momentum.
The strategy ensures that only one position is open at any time. No additional entries are allowed until the current trade is closed.
2. Exit Logic (Reversal Close)
Instead of using stop loss or take profit levels, the strategy closes open positions solely based on MACD reversal signals:
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Close Buy:
The MACD main line crosses below the signal line, confirming a bearish reversal. -
Close Sell:
The MACD main line crosses above the signal line, confirming a bullish reversal.
This exit method maintains a purely indicator-driven approach and avoids fixed-level-based exits.
3. Position Sizing
The EA uses an adaptive lot-sizing mechanism:
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Validates broker constraints (minimum lot, lot step, maximum lot)
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Computes whether the available free margin is sufficient
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Dynamically reduces the lot size if necessary
This ensures compatibility with any MT4 broker and prevents margin-related trade errors.
4. Market Conditions
The strategy functions across all timeframes and symbols. Since the MACD is a momentum indicator, the approach is particularly effective during trending or semi-trending market phases, while reacting slower during low-volatility or sideways conditions.
5. Risk Considerations
Because the system does not use stop loss or take profit orders, trades remain open until a MACD reversal is detected. This can lead to prolonged drawdowns in ranging markets or during trend exhaustion. Position sizing via the auto-lot system mitigates but does not eliminate this risk.
