Heatmap MACD Strategy

2023年10月5日

Hello traders

A customer gave me the idea indirectly after I made an update to that script:
Supertrend MTF Heatmap

Important Notes

The backtest results aren't relevant for this educational script publication.
I used realistic backtesting data but didn't look too much into optimizing the results, as this isn't the point of why I'm publishing this script.

I wanted to showcase that any Heatmap script can be converted into a strategy.

The strategy default settings are:

• Initial Capital: 100000 USD

• Position Size: 1 contract
  
• Commission Percent: 0.075%
  
• Slippage: 1 tick
  
• No margin/leverage used
  

For example, those are realistic settings for trading CFD indices with low timeframes, but not the best possible settings for all assets/timeframes.

Concept

The Heatmap MACD Strategy allows selecting one MACD in five different timeframes.
You'll get an exit signal whenever one of the 5 MACDs changes direction.
Then, the strategy re-enters whenever all the MACDs are in the same direction again.

It takes:

• long trades when all the 5 MACD histograms are bullish
  
• short trades when all the 5 MACD histograms are bearish
  

You can select the same timeframe multiple times if you don't need five timeframes.
For example, if you only need the 30min, the 1H, and 2H, you can set your timeframes as follow:

• 30m
  
• 30m
  
• 30m
  
• 1H
  
• 2H
  

Risk Management Features

Nothing too fancy
All the features below are pips-based

• Stop-Loss
  
• Trailing Stop-Loss
  
• Stop-Loss to Breakeven after a certain amount of pips has been reached
  
• Take Profit 1st level and closing X% of the trade
  
• Take Profit 2nd level and close the remaining of the trade
  

What's next?

I'll publish this script's open-source Pineconnector, ProfitView, and AutoView versions for educational purposes.

Thank you
Dave