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TWO TIME FRAME MACD STOCHASTIC STRATEGY
Source: https://fxcodebase.com/code/viewtopic.php?f=31&t=64345
Forum: 31 · Topic 64345 · 19 post(s)
TWO TIME FRAME MACD STOCHASTIC STRATEGY
Apprentice · Thu Jan 26, 2017 5:10 am
A. Histogram Level: Off
i. If MACD histogram is rising in higher time frame then, in lower time frame, stochastic K is smaller than oversold level or crosses oversold level declining Open Long
ii. If MACD histogram is declining in higher time frame then, in lower time frame, stochastic K is bigger than overbought level or crosses overbought level rising Open Short
B. Histogram Level: On
i. If MACD histogram is rising in higher time frame and histogram is smaller than zero then, in lower time frame, stochastic K is smaller than oversold level or crosses oversold level declining Open Long
ii. If MACD histogram is declining in higher time frame and histogram is bigger than zero then, in lower time frame, stochastic K is bigger than ovebought level or crosses overbought level rising Open Short
TWO TIME FRAME MACD STOCHASTIC STRATEGY.lua
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
foreveryoung · Thu Jan 26, 2017 6:42 am
That was fast Apprentice. Thank you very much!
However, trying to back test it, it says “238: MACD time frame must be equal or bigger than Stochastic time frame!” although this is not true with the strategy dialogue. The opposite works (i.e. small time frame for MACD, big time frame for stochastic).
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
foreveryoung · Thu Jan 26, 2017 7:25 am
Additionally, I had a look into it and found following bugs:
- In the strategy dialogue, the time frame of stochastic controls the MACD (probably that is why it gives the in-previous-post-described error).
- It uses the same time frame for stochastic as for MACD.
- If Close On Opposite is set to “No”, then no trade is executed.
Thanks
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
foreveryoung · Thu Jan 26, 2017 7:57 am
Finally, and most important, the clarification I made last night is the opposite (I got confused, sorry). The order is triggered by the stochastic K, i.e.
- If MACD histogram on long time frame is below zero & rising, open long when stochastic K on the short time frame is in the oversold territory or crosses the oversold level declining
- If MACD histogram on long time frame is above zero & declining, open short when stochastic K on the short time frame is in the overbought territory or crosses the overbought level rising
- Close on opposite
Thanks
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
Apprentice · Thu Jan 26, 2017 8:01 am
Time frame issue resolved. Try to set “Account Type” to appropriate method Now it is set as “Automatic”
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
foreveryoung · Thu Jan 26, 2017 9:31 am
Hi Apprentice
Tested it again, it now says “238: Stochastic time frame must be equal to or bigger than MACD time frame!”, which obviously is not the case.
A final request, kindly introduce a “Histogram Level: Yes/No” in the strategy dialogue, which shall turn on/turn off the MACD histogram level precondition, i.e., when “No”, strategy will be as well able to go long as when the histogram rises above the zero line, & vice versa.
Thank you very much your efforts
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
Apprentice · Fri Jan 27, 2017 3:24 am
Tested it again, it now says “238: Stochastic time frame must be equal to or bigger than MACD time frame!”, which obviously is not the case.
Can you share your settings.
A final request, kindly introduce a “Histogram Level: Yes/No” in the strategy dialogue, which shall turn on/turn off the MACD histogram level precondition, i.e., when “No”, strategy will be as well able to go long as when the histogram rises above the zero line, & vice versa.
Can you formulate this as pseudo code.
If … and … then … Open Long …
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
foreveryoung · Fri Jan 27, 2017 4:15 am
Good Morning From Greece!
I. Settings Request
MACD Time Frame :5 minutes Stochastic Time Frame: 1 minute Account type : non FIFO
All other settings at default, it gives the following error when back tested: “238: Stochastic time frame must be equal to or bigger than MACD time frame!”, which is not what we are looking for, it is the MACD time frame that needs to be bigger than the stochastic one in this strategy.
II. Psedocode Request
A. Histogram Level: Off
i. If MACD histogram is rising in higher time frame then, in lower time frame, stochastic K is smaller than oversold level or crosses oversold level declining Open Long
ii. If MACD histogram is declining in higher time frame then, in lower time frame, stochastic K is bigger than overbought level or crosses overbought level rising Open Short
B. Histogram Level: On
i. If MACD histogram is rising in higher time frame and histogram is smaller than zero then, in lower time frame, stochastic K is smaller than oversold level or crosses oversold level declining Open Long
ii. If MACD histogram is declining in higher time frame and histogram is bigger than zero then, in lower time frame, stochastic K is bigger than ovebought level or crosses overbought level rising Open Short
Thanks!
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
Apprentice · Sat Jan 28, 2017 9:45 am
Try it now.
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
foreveryoung · Sat Jan 28, 2017 1:21 pm
Hi Apprentice
It is great to have a manual strategy automated to that success, the only thing that is missing is the right stop loss. Back tested it with many different parameters, it always gives more winning orders than losing ones, however, in this version, losing orders are way too damaging, therefore, should a trade is not to work fast, better stop it. This could be implemented by introducing an optional exit where:
Optional Exit: Yes
If Long Then MACD histogram at the higher time frame declines Close
If Short Then MACD histogram at the higher time frame rises Close
Thank you for your prompt response & actions, as always
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
foreveryoung · Sat Jan 28, 2017 2:14 pm
Dear Apprentice
One Question
What Use Position Cap stands for? It seems to be giving so different results???
Thanks
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
foreveryoung · Mon Jan 30, 2017 4:56 am
Good Morning Everybody!
Continuing back testing, I found this very interesting result. Look at the 5th of October on the attachments, the MACD is rising on the daily (this was the MACD time frame in the parameters), and the strategy opens a short order while it should not. Look also at the 4 hours time frame (this was the Stochastic time frame in the parameters), the MACD is falling so, could it be that the large time frame is not connected at all, i.e., the whole strategy is taking place at the stochastic time framer only?
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
foreveryoung · Mon Jan 30, 2017 5:17 am
Well, no, this is not the case, if so, it would have closed the order down about 2nd of November and reverse…
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
Apprentice · Mon Jan 30, 2017 6:02 am
the whole strategy is taking place at the stochastic time framer only?
This is true.
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
foreveryoung · Mon Jan 30, 2017 8:16 am
Well, I started a demo account, the coding is finally not doing what the strategy is, since it opened @ 14:00 L.T. a long order with EUR/USD, while MACD histogram (MACD time frame set @ 1 hour) has been declining. The triggering of order from stochastic works (stochastic time frame set @ 5 minutes), however, the histogram condition (i.e. histogram rising or declining) is not. Actually, what it seems to be doing is, every time there is a new candle in the MACD time frame (i.e. every one hour in my test above), and stochastic K is OS/OB in its time frame, then go long/short respectively
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
Apprentice · Fri Jan 05, 2018 8:22 am
The strategy was revised and updated.
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
joseph16 · Fri Jul 20, 2018 9:59 am
Hi, Was this strategy updated and is it available?
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
joseph16 · Fri Jul 20, 2018 10:08 am
Hi guys, I have a few ideas in line with what you are doing here, however I have no experience with coding, can you assist to tweek in order to test? I know this is a old post! Sorry! cheers
Re: TWO TIME FRAME MACD STOCHASTIC STRATEGY
Apprentice · Sat Aug 04, 2018 6:58 am
The strategy was revised and updated. You can find the updated version in the first post of this topic.