reverse engineering MACD-R2

Sorry what are the bar lengths again?

Cheers

 

which one do you want the macd-r2 or the m-macd-r2?
and forex version or stock version

 

both.

And the futures version

 

are you saying the formula is the same as regular MACD?

So someone wrote a paper about how regular MACD doesn't work but regular MACD with specific entires and exits does work? lol wtf

 

Test the following: Enter long when MACD line crosses above zero line, exit when MACD line crosses below signal line. Enter short when the MACD line crooses below the zero line, exit when the MACD line crosses above the signal line.

 

Sorry but this is off topic most here are interested in the derived MACD-R2 not T28's/JJ's SPM. Check out the SPM thread for the other pls

 

macd in the one in the paper is the same yes

its just saying that (macd-singal line / price)*100 = % of crossing inrelation to price

this is just making it so you can enter at .5 or so ride the trend and exit when price becomes over extended.

this was just proving that random walk theory was wrong but what they did with this crossing leveel had tons of implications which ive been working on recently just for forex tho.

 

Read the paper. It's the calculations used for entry and exit not the MACD just as whale said.

 

From the paper:

"The basic concept of model MACDR2 is the same as in model MACDR1. However, the buy or sell signal is given, if the difference
between the moving averages is bigger or equal than a certain percentage of the stock price at the end of the third day after a crossing."

 

# of profitable trades - 1268
# of unprofitable trades - 2202

36.541% profit rate
63.459% loss rate

buy instead of sell and sell instead of buy, and you have a winning system!