70% Win Rate Highly Profitable MACD + Parabolic SAR + 200 EMA Trading Strategy
This Article is inspired by “70% Win Rate Highly Profitable MACD + Parabolic SAR + 200 EMA Trading Strategy”.
Quick links :
Finished Strategy : https://www.tradingview.com/script/coiiffiY-PSAR-MACD-200-EMA-by-DaviddTech/
Join me on discord : https://www.patreon.com/daviddtech
Watch me test strategies with code : https://www.youtube.com/channel/UC7NJLsf6IonOy8QI8gt5BeA
In this article, we are going to reveal a simple trading strategy that has been proven to have a high win rate, and later in the article, we will show you proof of it having a high win rate by coding this strategy in pinescript backtesting the strategy 100 times or more on TradingView, so without further ado, let’s get started.
So for this strategy, we’re going to use a combination of three different indicators, the 200 ema, the parabolic sar, and the macd.
Macd is one of the popular indicators for detecting Momentum. For this setting we are going to leave it alone and simply keep the default settings as you can see the indication is made up of three components. First, there’s the blue line, which is known as the macd line.
This line travels quicker and is more sensitive to price fluctuations, which will be the macd indicator’s primary emphasis. The orange line, commonly known as the signal line, follows. This line reacts more slowly.
Finally, we have the histogram, which simply shows the correlation between the macd line and the signal line, for example, if the line crosses above the signal line, the histogram turns green, and if it crosses below, the histogram turns red. The gap between the macd line and the signal line also affects the size of the histogram.
The parabolic sar is a basic and easy-to-learn indicator that performs an excellent job of spotting market trends. In this we will also leave the Settings alone and just utilize the default settings. Now, we can clearly see that the indicator consists of multiple dots, and the way we use them is very simple: if the dots are below the candle, the market is in an uptrend, and if the dots are above, the market is in a downtrend.
Moving on to the third indicator, the 200 period exponential moving average, or 200 ema for short, which will be used to indicate the long-term trend direction for this approach. If the price is above the 200 ema, the market is in an uptrend, and we only take long positions; if the price is below the 200 ema, the market is in a downtrend, and we only take short positions.
For Entry
Long = Crossover of the histogram with 0, current candle above the 200 EMA, and PSAR indicating an uptrend.
Short = Crossunder of histogram with 0, current candle below 200 EMA, and PSAR indicating a downtrend
For Exit
We exit long when the condition is short or when the TP/SL computed from the entrance point with the SAR distance is triggered.
When we have a long condition or when the TP/SL computed from the entry point with the SAR distance is activated, we exit short.
Backtest Results
Market = euro USD
Time Frame = 30 minutes
Risk reward Ratio = 2:1
Time for 100 trades = 106
Winners = 69
Winners per row = 7
Losses per row = 5
Conclusion
You can download and test this strategy here :
Finished Strategy : https://www.tradingview.com/script/coiiffiY-PSAR-MACD-200-EMA-by-DaviddTech/
Join me on discord : https://www.patreon.com/daviddtech
Watch me test strategies with code : https://www.youtube.com/channel/UC7NJLsf6IonOy8QI8gt5BeA
