This Simple MACD Trading Strategy Made $301,000 In 2022!

the smart D strategy I'm about to show you made over three hundred thousand dollars in 2022 alone in this video I'm gonna show you exactly how this strategy works and I will also back test it in order to see the rest of its performance metrics like win rate profit Factor maximum drawdown and so much more let's get straight to it first things first get on trading View and load whatever Forex pair or trading security that you like because this strategy will work on almost all of this from me I'm gonna be using the GBP USD the time frame is gonna be one hour because this is a trend following strategy and Trends usually last longer on the one hour time frame than on Lower time frames now this strategy utilizes a grand total of well just two indicators actually now if you haven't figured out already our first indicator is called macd or moving average conver origin's Divergence to add a charge we're going to go to the indicators Tab and type in macd and select this one right here the macd indicator is great at detecting changes in momentum and direction of the trend of an asset it's made up of four components namely the zero line which represents the center of the macd indicator the macd line which usually is a 12 Day exponential moving average the signal line usually a 26 day EMA and then the histogram which is usually the difference between the macd line and the signal line so how does this indicator work well when the macd line crosses above the signal line that indicates the beginning of a bullish Trend and when the macd line crosses below the signal line that indicates the beginning of a bearish trend that's exactly how we're going to use this indicator to trade we'll take a long trade whenever the macd line crosses above the signal line but only if it happens below the zero line like right here if it happens above the zero line like here we wouldn't take that trade it it's the exact opposite for short trades meaning that we will only go short whenever the macd line crosses below the signal line and it happens above the zero line like here if the cross happens below the zero line like here we wouldn't take that trade now going through this indicator you can tell that it's extremely easy to use but just like any other indicator this indicator has some problems with bad signals like here we see that the market was in a bullish Trend and the Mach D indicator was still producing short signals to fix this issue we're going to need a trend confirmation indicator so that we only take trades in the direction of the predominant Trend click on the indicators job type in simple to Ema cloud and select this one by all ignator then we're going to change some settings click here on the inputs tab change slow EMA to 200. and fast EMA to 20. on this tile tab uncheck everything except the plot's background and then change the plot's background color to this light red and then click OK when a price is trading Above This EMA Trend Cloud it's in an uptrend but whenever it's trading below this EMA Trend Cloud it's in a downtrend as simple as that now let's paste these two indicators together to create our highly profitable trading strategy we'll start with conditions for long trades to take a long trade we're going to look for two conditions first the price should close above the EMA Trend Cloud without touching the bottom of the cloud but what if it did touch the bottom of the cloud like right here we see that this Scandal closed above the cloud which is really good right but looking at this Wick it's also touching the bottom of the cloud well in that case we wouldn't take that trade simple the second condition is for the markd line to cross above the signal line while being below the zero line if the cross happens above the zero line like it did right here you simply skip that trade all these conditions are met on this candle so we enter a long trade we're gonna set our stop loss below the most recent swing low and for the take profit we're gonna set it at two times the risk we let the trade run and take profit now here is another example as we can see here the price closed above the EMA Trend Cloud without touching the bottom of the cloud finally we see that the macd line crossed above the signal line while being below the zero line we enter a long trade here our stop loss is going to go below the most recent swing low and for the take profit we're gonna set it at two times the risk we let the trade run and take profit for short trades it's the exact opposite so first the price should close below the EMA Trend Cloud without touching the top of the cloud just like long trades we will not take any short trades whenever the candle touches the top of the cloud like right here we see that this candle closed below the cloud which is fantastic it's what we're looking for right but looking at this Wick it's also touching the top of the cloud well in this case we simply skip this trade the second condition is for the macd line to cross below the signal line while being above the zero line if the cross happens below the zero line like it did right here you simply skip that setup all our entry conditions are met on this candle so we enter a short trade we're gonna set our stop loss above the most recent swing High for the take profit we're gonna set it at two times the risk we let the trade run and take profit here is another example as you can see here the price closed below the EMA Trend Cloud without touching the top of the cloud finally we see that the macd line crossed below the signal line while being above the zero line we're gonna enter a short trade here set our stop loss above the most percent swing High and for the take profit we're gonna set it at two times the risk we let the trade run and take profit and that's basically it for this strategy if you have any questions leave them in the comment section below and I'll be right there to answer now I'm gonna back test it 150 times using a risk reward ratio of one to two the account set is going to be set at two hundred thousand dollars I know 200 Grand is a lot of money but let's just assume that we're trading using a funded prop from account what about the risk per trade well we're going to be risking two percent of our account size every time we take a trade let's get into it thank you now the bug testing is done and we have the results but before we share it with you guys if you found value in this video take a second and hit that like button below because by doing that you're basically motivating us to keep creating this free and value-packed videos for you guys so please do that now for 2022 alone these are the numbers a 78 win rate and the percentage profit made was 150 percent with our 200k account this equates to 301 000 made in 2022 alone 69 trades were taken in 2022 alone and and the maximum consecutive losses were only four well enough of 2022 here are the numbers for the entire two-year backlist after 150 trades we see that the win rate of this strategy was 71 and the gain on the account was 440 percent these numbers are really good we see that it had an amazing profit factor of 4.98 seven consecutive wins against five consecutive losses and a maximum drawdown of 5 percent and as mentioned earlier it took me two years to find these 150 trades if you want to give this strategy a try remember to do extensive bug testing and customize it to your liking to make it even better if you have any questions about the strategy leave them in the comment section below and I'll be right there to answer so that's been it for this video hope you found some value if you did hit the like button below and you consider subscribing to stay tuned thanks for watching and I'll see you guys next time [Music]

Channel: PineTrades

Views: 128,162

Keywords: macd indicator, macd trading strategy, macd indicator explained, macd strategy, macd explained, macd forex, macd forex trading strategy, macd trading, how to use macd indicator, how to macd, moving average convergence divergence, macd, day trading, day trading strategies, forex trading strategy, swing trading strategy, best macd trading strategy, best macd settings for swing trading, macd indicator cryptocurrency, best forex macd strategy, macd crypto strategy, pinetrades

Id: ybPcpwhSaUU

Length: 9min 22sec (562 seconds)

Published: Wed Jan 25 2023