MACD Moving Average Crossover Strategy

This strategy combines the MACD indicator with moving averages, going long when both give aligned signals. The logic is: 1. Compute FAST MACD, typically 12-day EMA 2. Compute SLOW MACD, typically 26-day EMA 3. MACD…

Pine ScriptTrend following Mean reversion MACD EMA SMA

Author: ChaoZhang
Complexity: Intermediate · 54 lines
Parameters: 12
Backtest bar: 30m · intraday
Tested on: BTC/USDT · futures

Jump to code View in vault Original on FMZ

Strategy Logic

This strategy combines the MACD indicator with moving averages, going long when both give aligned signals.

The logic is:

Compute FAST MACD, typically 12-day EMA
Compute SLOW MACD, typically 26-day EMA
MACD is FAST minus SLOW
Signal line is typically 9-day MA of MACD
Compute 9-day and 26-day MAs
Consider long when MACD crosses above signal line
Go long when 9-day MA crosses above 26-day MA
Close long when MACD crosses below signal line and 9-day MA crosses below 26-day MA

The strategy taps MACD's overbought-oversold gauge and MA's trend following ability, combining both for higher odds trades.

Advantages

MACD judges overbought/oversold, MA determines trend
Combination provides high-probability long opportunities
Clear rules easy to implement

Risks

Requires optimization to determine best parameters
LONG-only unable to use short opportunities
With-trend trades may magnify losses

Summary

This strategy utilizes MACD and MA's strengths in judging market rhythm. But LONG-only limitations and parameter optimization warrant caution.

Parameters

Name	Default	What it controls
v_input_1	12	Fast Length
v_input_2	26	Slow Length
v_input_3_close	0	Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_4	9	Signal Smoothing
v_input_5	false	Simple MA(Oscillator)
v_input_6	false	Simple MA(Signal Line)
v_input_7	2019	From Year
v_input_8	true	From Month
v_input_9	true	From Day
v_input_10	9999	To Year
v_input_11	12	To Month
v_input_12	31	To Day

Source Pine Script

/*backtest
start: 2023-09-06 00:00:00
end: 2023-09-13 00:00:00
period: 30m
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/


//@version=4
strategy("MACD Cross+MA", overlay=true)
//@version=4
// Getting inputs
fast_length = input(title="Fast Length", type=input.integer, defval=12)
slow_length = input(title="Slow Length", type=input.integer, defval=26)
src = input(title="Source", type=input.source, defval=close)
signal_length = input(title="Signal Smoothing", type=input.integer, minval = 1, maxval = 50, defval = 9)
sma_source = input(title="Simple MA(Oscillator)", type=input.bool, defval=false)
sma_signal = input(title="Simple MA(Signal Line)", type=input.bool, defval=false)
// === INPUT BACKTEST RANGE ===
FromYear  = input(defval = 2019, title = "From Year", minval = 2009)
FromMonth = input(defval = 1, title = "From Month", minval = 1, maxval = 12)
FromDay   = input(defval = 1, title = "From Day", minval = 1, maxval = 31)
ToYear    = input(defval = 9999, title = "To Year", minval = 2009)
ToMonth   = input(defval = 12, title = "To Month", minval = 1, maxval = 12)
ToDay     = input(defval = 31, title = "To Day", minval = 1, maxval = 31)

// === FUNCTION EXAMPLE ===
start     = timestamp(FromYear, FromMonth, FromDay, 00, 00)  // backtest start window
finish    = timestamp(ToYear, ToMonth, ToDay, 23, 59)        // backtest finish window
window()  => time >= start and time <= finish ? true : false // create function "within window of time"


// Calculating
fast_ma = sma_source ? sma(src, fast_length) : ema(src, fast_length)
slow_ma = sma_source ? sma(src, slow_length) : ema(src, slow_length)
macd = fast_ma - slow_ma
signal = sma_signal ? sma(macd, signal_length) : ema(macd, signal_length)
hist = macd - signal
//plot
plot(sma(close,9),color=color.red)
plot(sma(close,26),color=color.green)
//Condition
BMacdcondition= (macd>signal)
SMacdcondition= (macd<signal)
longCondition = crossover(sma(close, 9), sma(close, 26))
shortCondition = crossunder(sma(close, 9), sma(close, 26))
//entry
if (BMacdcondition) and window()
    (longCondition)
    strategy.entry("LONG", strategy.long)
if (shortCondition) and window()
    (SMacdcondition)
    strategy.close("LONG", qty_percent=100 , comment="หนีตาย")

Published by ChaoZhang on the FMZ strategy square · last modified 2023-09-14. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

Build this with AgenKit

A spec is not a trading system. Paste this into your coding agent and AgenKit runs a specialist team — architecture, test-first build, risk gates, review — with paper trading on by default.

in Claude Code, Cursor, Codex & 4 more

/agenkit build a production-grade trading bot with a backtest engine, risk controls and paper trading by default from strategies/MACD-Moving-Average-Crossover-Strategy.md

npx agenkit install engineering-kit in your project
Paste the command into your agent and approve each phase
Get tests, backtest, risk controls and a paper-trading switch

Get AgenKit How /agenkit works

Understand it first

Before you run this, read the lesson behind the idea and how to backtest it honestly. Specs like this one are the survivors of an unknown number of trials; deflate their results accordingly.