EA-17080 · Momentum

MACD signal

This EA trades based on MACD signal line crossovers, entering long positions when the MACD line crosses above the signal line and short positions when it crosses below. It uses configurable lot sizing and stop loss/take profit levels for trade management. The strategy is a classic momentum-based approach relying on MACD histogram direction changes for trade signals.

Open the interactive view (equity curve, symbol switch)

Key facts

CategoryMomentum
RiskMedium
Blow-up riskLow
Rating★★☆☆☆
TypeTrading EA
TimeframesH1, H4, D1
IndicatorsMACD, EMA, SMA
Authortom112

Backtest results (H1, about 1 year)

SymbolP&LAnnualMax DDTradesWin rateSharpeRecoveryLosing streakPer tradeStatus
EURUSD+8.58%+7.42%1.95%11251.80%————Same as other EAs
GBPUSD+7.14%+6.18%3.52%11253.20%————Same as other EAs
USDJPY-7.96%-6.95%9.00%11346.40%————Same as other EAs
XAUUSD+75.88%+59.44%63.69%10650.90%————Same as other EAs

On every market this backtest is identical to EA-23210, EA-23325. The automatic conversion almost certainly lost what makes this EA different (a custom indicator, a filter or the money management), so these results are not ranked or counted.

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 strategy of this EA is based on MACD line and signal line crossovers, which is a classic momentum-following approach. Entry conditions trigger when the MACD main line crosses above the signal line for long positions and below for short positions, capturing trend initiation signals. Exit conditions rely on predefined stop loss and take profit parameters, with no trailing stop or dynamic exit mechanism. Position sizing uses a fixed lot approach without dynamic adjustment based on account balance or market volatility. Money management lacks risk proportion control, as it does not calculate optimal position size based on ATR or account equity. The overall strategy logic is straightforward, but it is prone to frequent false signals in ranging markets that can lead to consecutive losses.

Strengths

  • Simple and clear strategy logic that is easy to understand and maintain
  • MACD is a well-established classic momentum indicator with proven reliability
  • Configurable parameters allow users to optimize settings for different market conditions
  • Stop loss and take profit mechanisms protect capital safety

Weaknesses

  • Prone to frequent false signals in ranging markets leading to consecutive losses
  • Fixed lot sizing lacks dynamic position management, unable to adjust risk exposure based on market volatility
  • No new bar check mechanism, potentially opening multiple positions on the same bar
  • Lacks trailing stop functionality, unable to lock in floating profits
  • No spread filter, trading costs may be excessive in high-spread environments

Possible improvements

  • Add ATR-based dynamic stop loss and position sizing to automatically adjust risk exposure based on market volatility
  • Implement trend filter conditions (e.g., higher timeframe MA direction) to avoid frequent trading in ranging markets
  • Implement new bar check mechanism and spread filter to improve trade execution reliability

Risk assessment

Overall risk: Medium

  • Lack of new bar check may cause over-trading by repeatedly opening positions on the same bar
  • Fixed lot size is not linked to account equity, keeping risk exposure unchanged during large drawdowns
  • No spread filter may cause additional losses from slippage and high spreads during low liquidity sessions

Evaluation scores

Code quality2.0
Strategy logic3.0
Risk management2.0
Robustness2.0
Innovation1.0
Documentation1.0
Overall1.8

Parameters

ParameterDefaultDescription
LotSize0.1Fixed lot size per trade
StopLoss50Stop loss in points
TakeProfit100Take profit in points
MACD_FastEMA12MACD fast EMA period
MACD_SlowEMA26MACD slow EMA period
MACD_SignalSMA9MACD signal SMA period

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Backtests are historical simulations and do not guarantee future results. Not financial advice.

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