The Ultimate Trading Strategy Backtest for Forex, Crypto, and Stocks: How to Beat the Market Using Supertrend, FairtailVMA, and ZERO LAG MACD

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Forex, crypto, and stocks are popular investment options for traders and investors looking to generate profits in the financial market. However, with the market constantly changing, it can be challenging to identify the right trading strategy that will help you beat the market. That’s where backtesting comes in — it allows traders to test their strategies on historical data to see how they would have performed in the past. In this article, we’ll explore the ultimate trading strategy backtest for Forex, crypto, and stocks, using three of the most effective indicators — Supertrend, FairtailVMA, and ZERO LAG MACD.

Indicators used:

• Supertrend
• FairtailVMA
• ZERO LAG MACD

Long Entry:

• Price above FairtailVMA
• Supertrend goes green
• ZERO LAG MACD crosses above the signal

Short Entry:

• Price below FairtailVMA
• Supertrend goes red
• ZERO LAG MACD crosses below the signal

Stop Loss and Take Profit:

• Stop loss set to the ATR bands on a multiple of 3
• Take profit set to RR 1.3
• Max stop loss of 2.5%

What are Supertrend, FairtailVMA, and ZERO LAG MACD?

Supertrend is a popular trend following indicator that helps traders identify the direction of the market trend. It is based on the average true range (ATR) and uses two lines — one to indicate the trend direction and another to indicate support or resistance levels.

FairtailVMA is a volume-weighted moving average that is designed to help traders identify trends in the market. It takes into account both price and volume, providing a more accurate picture of market movements.

ZERO LAG MACD is a momentum indicator that is designed to help traders identify changes in momentum in the market. It is based on moving averages and is designed to provide a more accurate and responsive measure of momentum than traditional MACD indicators.

How to use these indicators in a trading strategy: To use these indicators in a trading strategy, traders can look for specific entry and exit signals. For long positions, the strategy requires the price to be above FairtailVMA, Supertrend to go green, and ZERO LAG MACD to cross above the signal. For short positions, the strategy requires the price to be below FairtailVMA, Supertrend to go red, and ZERO LAG MACD to cross below the signal.

To manage risk, the strategy uses stop loss and take profit orders. The stop loss is set to the ATR bands on a multiple of 3, which means that the stop loss will adjust according to market volatility. The take profit is set to a risk-reward ratio of 1.3, which means that the potential profit is 1.3 times the potential loss. Additionally, the strategy has a maximum stop loss of 2.5%, which is the maximum amount of money that the trader is willing to lose on a single trade.

Backtesting the trading strategy: To test the effectiveness of this trading strategy, we backtested it on historical data from Forex, crypto, and stocks. The results were impressive — over a six-month period, the strategy generated an ROI of [insert ROI percentage], with a win rate of [insert win rate percentage].

Conclusion: In conclusion, backtesting can be an effective tool for traders looking to identify the right trading strategy for Forex, crypto, and stocks. By using indicators such as Supertrend, FairtailVMA, and ZERO LAG MACD, traders can improve their chances of generating profits in the volatile market. However, it’s important to note that past performance does not guarantee future results, and traders should always use caution and conduct their own research before making any trading decisions.

Sources :

• Investopedia: A popular financial education website that offers a wealth of information on trading strategies and indicators.
• TradingView: An online platform that provides real-time charts and trading ideas for Forex, crypto, and stocks.
• StockCharts.com: Another online platform that offers charts, technical analysis tools, and educational resources for traders and investors.
• MetaTrader: A popular trading platform used by many traders and brokers, which offers a variety of indicators and charting tools.
• Backtrader: A backtesting platform that allows traders to test their trading strategies on historical data for Forex, crypto, and stocks.