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Strategies / Momentum / MACD Histogram Signal Crossover (long only)

MACD Histogram Signal Crossover (long only)

The strategy buys when a smoothed MACD histogram crosses above its own signal line while the histogram is below zero. It sells when the histogram crosses back below that signal line.

MomentumLong onlySwingDow JonesDaily
1.51Profit factor
31,502Net profit EUR
46.72%Win rate
580Trades
-6,077Max drawdown
54.31Avg trade

Best run of 12. Dow Jones, Daily, spread 3, from run pf:2026-10-10-DOW30-D.tsv:8.

Entry rules, long

  2. The MACD histogram is below zero.

Exit rules

  1. The MACD histogram crosses below its own 9 period EMA, closing the long position.

Test conditions

PeriodUp to 2026-10-10
InstrumentDow Jones, Daily
Spread3 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-10

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Dow JonesBest runDaily1.51 58046.7231,502 EUR-6,077
Gold4 hours1.26 1,14343.662,370 EUR-520
USD/JPY4 hoursn/a 1,39542.58443,740 USD-297,500
Silver4 hoursn/a 1,12641.1222,615 USD-12,112
SilverDailyn/a 41743.8814,412 USD-14,348
Nikkei 2254 hoursn/a 99643.1713,269 USD-9,975
Dow Jones4 hoursn/a 39844.4711,752 EUR-6,241
DAX 40Dailyn/a 58042.5910,474 EUR-3,173
Nasdaq 100Dailyn/a 47041.287,431 EUR-4,039
Nasdaq 1004 hoursn/a 1,24742.185,458 EUR-3,975
FTSE 100Dailyn/a 48843.854,190 EUR-3,013
S&P 500Dailyn/a 62040.651,608 EUR-1,347

Charts

Results by run

Top 10 of 12 runs. The full list is in the table above.

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// MACD Histogram Signal Crossover (long only)
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

myMacd = ExponentialAverage[12](close) - ExponentialAverage[26](close)
sig = ExponentialAverage[9](myMacd)
asp = myMacd - sig
aspsig = ExponentialAverage[9](asp)

10 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. 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".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

MACDEMA
Longer historyRe-run on up to 1,000,000 barsDow Jones · Daily · older data 0.00 EUR

Dow Jones had no history beyond the standard run, so both runs used 14,000 bars.

Dow Jones · Daily

Bars available14,000
Net, standard 200,000-bar run31,502.20 EUR
Net, long run31,502.20 EUR
Net on the older data alone0.00 EUR
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 Signal Crossover (long only) 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 12 market and timeframe combinations. The best run was Dow Jones, Daily, with a profit factor of 1.51 over 580 trades.

How large was the drawdown?

The best run had a maximum drawdown of 6,077 EUR at the tested position size, against a net result of 31,502 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

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Turtle Trade

Best run on the same market, Dow Jones.

2.42 PF · 6,324 trades

MACD Zero Line Two-Way Crossover

Also a momentum strategy.

1.51 PF · 405 trades

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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.comStatsDocs