Rank: Advanced Member
Groups: Registered, Registered Users, Unverified Users
Joined: 8/12/2005(UTC)
Posts: 73
|
Gerald Appel the creator of the MACD recommends
8,17,9 buy signals
12,25,9 sell signals
Also use the crossing of the histograms of the two as confirmation.
Has anyone had any success with this better or worse than the default setting of
12,26,9?
|
|
|
|
|
|
Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers
Joined: 10/26/2009(UTC)
Posts: 76
Location: Toronto, Canada
|
I have not tried using different settings for the MACD but when you reverse the sell signal to a buy signal using the original settings(e.i. the MA of the MACD crossing above the MACD) it results in a much profitable system, at least from the tests that I have done.
|
|
|
|
|
|
Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers
Joined: 12/14/2009(UTC)
Posts: 140
Location: Austria
|
My opinion is that it depends on your target security .. on the volatility of your target... and how often you want or you are able to trade (how many trades/period)
|
|
|
|
|
|
Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers
Joined: 5/25/2010(UTC)
Posts: 55
|
(the last post was months ago but in case anyone is still studying this...)
I would concur with v. trader for those securities that are in a trading range. For trending securities, however, the MACD signals as Appel designed them should work pretty well.
The big question is, then, how does one define TR vs. trending? Ah if we knew that then we'd all be rich, right?
|
|
|
|
|
|
Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 9/23/2009(UTC)
Posts: 51
|
A quick test with the Enhanced System Tester reveals the following results:
A hypothetical portfolio of $20,000 with $15,000 traded.
Stock Symbols traded SPY, QQQQ.
Test Period 1/1/2007 through 12/31/2009
Signals:
Buy 8,17,9
Sell 12,25,9
Results: SPY 18.32% annual return, QQQQ 27.05% annual return.
Signals:
Buy 12,26,9
Sell 12,26,9
Results: SPY 14.15% annual return, QQQQ 18.12% annual return
Based upon this quick analysis the Buy signal 8,17,9 and Sell signal 12,25,9 provides a better return than a Buy and Sell signal set at 12,26,9.
|
|
|
|
|
|
Rank: Newbie
Groups: Registered, Registered Users
Joined: 7/17/2010(UTC)
Posts: 4
|
Thanks Alan for this tests! [:)]
|
|
|
|
|
|
Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers
Joined: 5/25/2010(UTC)
Posts: 55
|
Alan,
How applicable do you feel that quick analysis is?
|
|
|
|
|
|
| Users browsing this topic |
|
Guest (Hidden)
|
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
