With this MACD crossover strategy, we will be looking at the 2 moving average lines in the indicator. When the MACD line crosses over the signal line, we will enter a long position. And when the MACD line crosses under the signal line, we will exit the long position. The opposite is done with shorting: enter on a cross under, and exit on a cross over.
MACD crossover strategy for the SPY on 15min timeframe
Results
Testing this strategy on the SPY has returned the following profit factors:
- 1min: 0.954
- 5min: 1.078
- 15min: 1.206
- 30min: 1.18
- 1hour: 0.989
- 4hour: 1.054
- 1day: 0.949
- Average: 1.059
The best timeframes to utilize this strategy would be on the 15min and 30min. Remember, different ticker symbols can provide different results.
TradingView Script
Try the MACD crossover strategy for yourself on TradingView: https://www.tradingview.com/script/xMrWdGUz-Moving-Average-Convergence-Divergence-Crossover-backtestx/
Test with your own tickers and timeframes to see how well it works!