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Strategies / Momentum / MACD Signal Cross Reversal

MACD Signal Cross Reversal

The idea buys when the MACD line crosses above its signal line and sells short when it crosses below. Each opposite cross closes and reverses the position, with a 0.5 percent stop and a 1.5 percent target.

MomentumLong & shortSwingUSD/JPY4 hours
1.13Profit factor
975,410Net profit USD
33.88%Win rate
2,727Trades
-170,630Max drawdown
358Avg trade

Best run of 4. USD/JPY, 4 hours, spread 1, from run pf:2026-10-05-USDJPY-4h.tsv:2.

Entry rules, long

  2. Buys 1 contract at market with a 0.5 percent stop and 1.5 percent target

Entry rules, short

  2. Sells 1 contract short at market with a 0.5 percent stop and 1.5 percent target

Exit rules

  2. The 0.5 percent stop or 1.5 percent target closes the trade

Test conditions

PeriodUp to 2026-10-05
InstrumentUSD/JPY, 4 hours
Spread1 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 tested2026-10-05

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest run4 hours1.13 2,72733.88975,410 USD-170,630
USD/JPY1 hourn/a 10,78633.90668,070 USD-259,810
DAX 404 hoursn/a 2,44128.197,687 EUR-3,619
GBP/USDDailyn/a 1,12727.155,041 USD-4,222

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

myMacd = MACDline[12,26,9](close)
macdsig = ExponentialAverage[9](myMacd)

16 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
Read this firstKnown weaknesses2 points
  • A profit factor of 1.13 leaves little room for costs beyond the spread.
  • Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run MACD Signal Cross Reversal 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 4 market and timeframe combinations. The best run was USD/JPY, 4 hours, with a profit factor of 1.13 over 2,727 trades.

How large was the drawdown?

The best run had a maximum drawdown of 170,630 USD at the tested position size, against a net result of 975,410 USD.

Does it trade long, short or both?

It trades both long and short.

Related

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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.comStatsDocs