Strategies / Momentum / MACD Histogram Cross Filter

MACD Histogram Cross Filter

The strategy buys when the MACD histogram crosses above zero while price is at or above a 50-period EMA, and sells short on the mirror condition. Each position closes when the histogram starts moving against it, and an opposite signal reverses it.

MomentumLong & shortSwingDAX 404 hours

1.28Profit factor

11,155Net profit EUR

41.05%Win rate

1,301Trades

-1,676Max drawdown

8.57Avg trade

Best run of 8. DAX 40, 4 hours, spread 3, from run pf:2026-10-12-DAX40-4h.tsv:1.

Entry rules, long

The close is at or above the 50-period EMA.

Entry rules, short

The close is at or below the 50-period EMA.

Exit rules

A short closes when the histogram is higher than on the previous bar, unless a long signal fires.

Test conditions

Period	Up to 2026-10-12
Instrument	DAX 40, 4 hours
Spread	3 points
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-10-12

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
DAX 40Best run	4 hours	1.28	1,301	41.05	11,155 EUR	-1,676
USD/JPY	4 hours	1.23	1,441	40.32	532,240 USD	-107,840
EUR/USD	4 hours	n/a	1,826	37.24	20,631 USD	-11,752
Silver	Daily	n/a	530	33.77	12,842 USD	-5,192
Nikkei 225	4 hours	n/a	1,041	36.70	6,824 USD	-5,469
DAX 40	Daily	n/a	656	40.40	5,019 EUR	-3,518
Gold	4 hours	n/a	1,270	36.14	769 EUR	-721
Gold	Daily	n/a	571	39.23	585 EUR	-250

Charts

Results by run

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// MACD Histogram Cross Filter
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

myMacd = ExponentialAverage[12](close) - ExponentialAverage[26](close)
signal = ExponentialAverage[9](myMacd)
hist = myMacd - signal
ema = ExponentialAverage[50](close)

17 more lines: the entry and exit rules.

Setup

How to load it

Copy the code with the copy button on the code block.
In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

MACDEMA

Read this firstKnown weaknesses2 points

The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run MACD Histogram Cross Filter in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 8 market and timeframe combinations. The best run was DAX 40, 4 hours, with a profit factor of 1.28 over 1,301 trades.

How large was the drawdown?

The best run had a maximum drawdown of 1,676 EUR at the tested position size, against a net result of 11,155 EUR.

Does it trade long, short or both?

It trades both long and short.

Slow MACD Slope

Uses the same indicator.

6.80 PF · 7,305 trades

Heikin Ashi Color Flip

Best run on the same market, DAX 40.

1.12 PF · 3,692 trades

WaveTrend Average Momentum Long

Also a momentum strategy.

1.27 PF · 2,902 trades

Want strategies that are already part of a live portfolio? Join the ProRealAlgos waitlist.

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.com Stats Docs