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macd

This approach utilizes the MACD indicator, which identifies possible shifts in momentum by analyzing signals.

The Moving Average Convergence Divergence (MACD) is a technical indicator that helps traders determine potential changes in an asset’s momentum. The indicator is based on the convergence and divergence of two exponential moving averages, typically a 12-period EMA and a 26-period EMA. Traders use the MACD to identify whether an asset is likely to experience a bullish or bearish trend, as well as potential trend reversals. When the MACD line crosses above the signal line, it is considered a buy signal, while a crossover below the signal line indicates a sell signal.

How to work with it
Buy method conditions
A buy order is allowed when the MACD line crosses up the signal line.

TIP
Normal constraints like “buy once, sell once” don’t apply to this strategy: each time buying criteria occur, AILidex will place a buy order as high as set in your balance settings.

Sell method conditions
A sell order is allowed when the MACD line crosses down the signal line.

INFO
Gain protection is optional for this strategy. Be aware that this can lead to sell orders below your break-even point.

Trading example

Example of how trading with this strategy can perform. Details and settings

The infographic below describes what triggers trades with this strategy.

Buy settings
Buy settings are the primary trigger for buy orders. These parameters control the execution of buy orders when using macd as buy method.

Buy enabled
Description
Values
Order types
Name
Set this to false to prevent AILidex from placing buy orders.

Single Buy
Description
Values
Order types
Name
Enable this to restrict macd to placing just a single buy order on the first crossup, then it will go in sell mode.

Useful when you combine macd with a different sell method or use other parameters that prevents sell orders from happening at every crossdown.

Sell settings
Sell settings are the primary trigger for sell orders. These parameters control the execution of sell orders when using macd as sell method.

Sell enabled
Description
Values
Order types
Name
Set this to false to prevent AILidex from placing sell orders.

Gain
Description
Values
Order types
Name
This sets the minimum target for selling when DOUBLE_CHECK_GAIN is enabled.

Indicator settings
Relevant indicators for trading with MACD.

These settings have a direct effect on trading with macd.

Period
Description
Values
Order types
Name
This sets the candlestick period used for trading, this affects all indicators within the strategy.

Only use supported values. The trading settings editor suggests valid values for the selected exchange..

Setting a short period allows you to trade on shorter trends, but be aware that these will be noisier than longer periods.

MACD Short
Description
Values
Order types
Name
The number of periods used for calculating the short-term moving average for MACD.

MACD Long
Description
Values
Order types
Name
The number of periods used for calculating the long-term moving average for MACD.

MACD Signal
Description
Values
Order types
Name
The number of periods used for calculating the MACD signal line.

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