MACD strategy

[BBzDan]

What's the difference between look back period and bars ago, when both of them apear in strategy wizard?

For example, MA cross below strategy can have both these parameters, what's the difference between MAfast cross bellow MAslow 2 look back periods, and MAfast < MAslow 2 bars ago (assume 1 min chart)?

What happens if one is different than the other one?

Thx.

[NinjaTrader_JoshP]

Lookback period for the CrossAbove/Below choices is not the same as bars ago.

Setting lookback period to 2 means your cross will look for a cross to happen anywhere inbetween the current bar and 2 bars ago.

Setting bars ago to 2 means your value of the current bar needs to be less than the value 2 bars ago. It doesn't matter if a cross happened or not. It just has to be lower.

[BBzDan]

Got it, thank you.
Dan

[jp2890]

In respect of a typical 12,26,9 MACD strategy, I just changed the EMA to (Close 3) and I got a smoother line.

In fact, what does it meant if I change the value of (Close) to 3?

Thanks!

[NinjaTrader_Bertrand]

Not sure I follow you, which of the three inputs of the MACD did you adjust?

[jp2890]

In respect of a typical 12,26,9 MACD strategy, at the Input series: I altered the DefaultInput to EMA and period 3.

The 12,26,9 are unchanged, I got a smoother MACD.

The condition is

CrossAbove(MACD(EMA(3),12,26,9),MACD(EMA(3),12,26,9)Avg,1)


What does it mean if I change the period of EMA in such?

[NinjaTrader_Austin]

jp2890, the EMA is what is passed to the MACD. So changing the period of the EMA is just changing the EMA which is fed to the MACD. I'm not sure of the specifics of your strategy, but in general increasing the period of any moving average just introduces undesirable "lag" into the strategy.

[jp2890]

Thank you Austin!

[jp2890]

Any suggestions on how to set strategy just rely on one curve, say EMA 50?

[NinjaTrader_Bertrand]

Sure, you could just for example compare the EMA 50 value on the left side to the EMA 50 value 5 bars ago and then create an action based on this, bars back can referend via the barsAgo parameter.

[jp2890]

Thanks Bertrand!


How to reduce the choppy buy and sell actions in such one line strategy?

[NinjaTrader_Bertrand]

You're welcome - you dip into a question many people spend considerable development time in...so there's many ways to improve such a strategy, for example time filters, a min range over the last x bars, trading only if the EMA has a certain slope...you will need to experiment with it.

[jp2890]

Thanks Betrand!

Where can I find more about using only one line for strategy?

Any name for this?

[NinjaTrader_Bertrand]

None I'm aware of - guess it would be best if you reviewed the help guide section around the Strategy Wizard and then take it from there -

http://www.ninjatrader-support.com/HelpGuideV6/WizardScreens.html

[jp2890]

Downloaded some indicators from your reference samples, say KeyReversalDown, NBarsUp etc....., any related to one line strategy?