MACDWaterlineCrossExpectator
This EA trades based on MACD crossing its zero (water) line, expecting momentum continuation after the crossover. It opens buy positions when MACD crosses above zero and sell positions when it crosses below zero, using the signal line crossover as confirmation or timing mechanism. The strategy is a classic momentum approach that capitalizes on shifts between bullish and bearish momentum regimes.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
| Symbol | P&L | Annual | Max DD | Trades | Win rate | Sharpe | Recovery | Losing streak | Per trade | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| EURUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| GBPUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| USDJPY | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| XAUUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
Why this EA never traded: no entry rule survived the conversion.
Converted from MQL5 to Python and run with the same rules for every EA. Positions use MT5 lot sizes (100,000 units per FX lot, 100 oz per gold lot) with 1:100 leverage, one order at a time, and a stop-out below 10% of the starting balance. Sharpe is computed from the equity curve. Results marked as unreliable are shown for completeness only.
Blow-up risk: No blow-up pattern found
- Has no stop loss or trailing stop
On its own this is not a typical blow-up pattern, and the account was not stopped out in our backtests. That is not a guarantee: any EA can lose money.
High: stopped out in our backtest, or martingale/grid sizing without a stop loss. Elevated: martingale or grid sizing with a stop loss, or several positions at once without a stop loss. What the label means and what we found →
Strategy analysis
The core concept of this strategy is the MACD zero-line crossover, which signals a fundamental shift in market momentum direction when MACD transitions from negative to positive or vice versa. Entry conditions are buying when MACD crosses above zero and selling when it crosses below zero, with some variants potentially using signal line crossovers as additional confirmation to reduce false signals. Exit conditions typically include closing positions on reverse zero-line crossovers, fixed take-profit and stop-loss levels, or ATR-based dynamic stop mechanisms. Position sizing may use fixed lot sizes or proportional sizing based on account balance. Money management requires reasonable stop-loss settings to control per-trade risk since MACD zero-line crossovers generate medium-to-long-term signals with potentially extended holding periods. The strategy's weakness lies in choppy markets where MACD frequently oscillates around zero, generating consecutive false breakouts and losses, making trend or volatility filters critical for strategy performance.
Strengths
- Clear and simple strategy logic based on the classic and widely recognized MACD zero-line crossover technique
- Captures medium-to-long-term trend reversal points, performing well in strongly trending markets
- Few parameters make it easy to understand and tune, suitable for beginners to learn from
- Objective and unambiguous entry signals eliminate subjective judgment ambiguity
Weaknesses
- MACD frequently crosses zero in choppy markets, generating numerous false signals and consecutive losses
- Lacks a trend filter to distinguish trending markets from range-bound conditions
- Default stop-loss may be zero, creating an unlimited risk exposure
- MACD zero-line crossover is a lagging signal, often entering after a significant portion of the move has already occurred
- Does not account for spread and slippage impacts, which can erode profits in short-term scenarios
Possible improvements
- Add a trend filter (e.g., ADX or higher timeframe moving average) to suppress trading in choppy markets
- Implement ATR-based dynamic stop-loss and take-profit to adapt to varying market volatility
- Add a new bar check mechanism to prevent repeated trade openings on the same candle
- Add spread filtering to avoid entering trades during high-spread conditions
Risk assessment
Overall risk: Medium
- Default stop-loss may be zero, creating unlimited per-trade risk
- Frequent false signals in choppy markets lead to consecutive losses
- No new bar detection, potentially opening duplicate positions on the same candle
- No position count check, risk of over-opening positions
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
FastEMA | 12 | MACD fast EMA period |
SlowEMA | 26 | MACD slow EMA period |
SignalSMA | 9 | MACD signal line SMA period |
LotSize | 0.1 | Trade lot size |
StopLoss | 0 | Stop loss points; 0 disables stop loss |
TakeProfit | 0 | Take profit in points; 0 disables TP |
MagicNumber | 1431 | EA magic number for identifying its orders |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.