Example A2: MACD Short trading
This is not a ready-to-use trading strategy. A trading strategy requires adjustment to the timeframe and symbol, along with thorough backtesting. The example is intended as a foundation for your own custom strategy and to help you get familiar with the Expert Advisor Builder web application. To import and use an example, please follow the instructions provided here.
Description
This example showcases a short trading strategy that mirrors the long MACD approach but operates in the opposite direction. The strategy opens sell positions when the MACD signal line crosses above the main line, suggesting downward price movement ahead. This reversal of the crossing condition adapts the indicator for bearish market conditions.
Similar to the long version, the Standard Deviation indicator manages risk by determining stop loss placement with a forward adjustment of 3.50. This multiplier ensures the stop loss stays far enough from the entry to avoid market noise. The take profit uses the same 1.40 risk ratio, maintaining consistent risk-reward principles regardless of trade direction.
Short trading requires careful attention to market conditions since many assets have an upward bias over time. This example helps traders understand how the same indicators can generate opposite signals by adjusting the relationship conditions between indicator lines.
Recreate the Example
You can either import this example directly or set it up manually. To manually replicate the trading module, make sure a newly added module includes the following key settings and that the professional mode is activated:
Trade Basics
- Operation type = Short
Signal Generation - Indicators - STD
- Signal in use = On
- Signal used for = Forward
- Selected indicator = STD
- Draw in chart = Off
- Forward adjustment = 3.50
Signal Generation - Indicators (MACD Main line)
- Signal in use = On
- Signal used for = Entry
- Selected indicator = MACD
- Line index = Main line
- Draw in chart = On
- Drawing slot = 1
Signal Generation - Indicators (MACD Signal line)
- Signal in use = On
- Signal used for = Entry
- Selected indicator = MACD
- Line index = Signal line
- Draw in chart = On
- Drawing slot = 2
Signal Generation - Indicator Combinations (MACD Main line & MACD Signal line)
- Signal in use = On
- Signal used for = Entry
- Input indicator 1 = MACD (Main line)
- Input indicator 2 = MACD (Signal line)
- Value relation = Value 2 cross value 1
Initial Stop Loss
- Selection = Indicator
- Used indicator = STD
Initial Take Profit
- Selection = Risk ratio
- Risk ratio = 1.40
Screenshots
