Please help, MACD Signals.

[monkey180]

Hello,

I would like a strategy that does BUY / SELLS on MACD Crossovers with a trailing stop.

I have got a chart up, and plotted the MACD indicator.

However I cannot get it to work in the Strategy Builder, I do not have a clue what to put in the User Defined Inputs, and can get MACD's in the Conditions box, but not sure if it is correct.

Basically please may I have some detailed instructions on how to get this working.

Once it is all up and running, I think that tweaking the values should be easy, I just cannot get it going in the first place.


Thanks

[NinjaTrader_Bertrand]

monkey180, if you haven't done so already please check through this documentation of the wizard interface and the conditions builder : http://www.ninjatrader.com/support/h...rd_screens.htm

http://www.ninjatrader.com/support/helpGuides/nt7/condition_builder.htm

We also have a strategy development webinar covering the wizard next Tuesday Sep 6th - http://www.ninjatrader.com/webinars

I'll have our NinjaScript trainee take a look later as well into your request.

[monkey180]

Hi there.

Yes please, a defined answer, I have read the guides and are still stuck. Just want to know for making that strategy:

1. What does in the User Defined Inputs.
2. What goes in the conditions and actions.

I understand the general idea of the builder, but do not know where to start specifically with the inputs.

Thanks

[NinjaTrader_AdamP]

I am happy to assist you.

Hello,

I am happy to assist you.

For a MACD crossover strategy, if you want to optimize the periods you will need to set some user defined inputs for the periods of the MACD. I.e. make 3 inputs titled Fast, Slow, and Smooth then set their defaults. Other inputs could be for custom calculations, or to keep track of PnL if your strategy needs to keep track of something like that. You will also want to add some constant value set to 0 so you can test whether the MACD crossed above/below the 0 line.

Now, you will also want an order size, a stop-loss, and a take-profit user defined input set up eventually before you use this for live trading. These will be used in order management.



Next, you need to setup the logic portion. Here you just create rules for when to enter/exit a trade. Each "Set _" tab is a new rule set. For the first "rule" you will select "add" in the section "When the following conditions are true: ". These are the conditions that must occur before the rule/s in the section "Do the following" is applied. In your case, when the "add" window pops up you will select indicators > MACD in the left panel, then set its periods to the user defined inputs, then select crosses above/below in the center, then what it crosses above/below in the right panel (in your case the 0 line).



Next you select "add" in the "Do the following:" section and add a rule for whatever you want the strategy to do when the MACD crosses 0. For example, if you chose "crossabove" in the former section, select "Enter long" now, and set the order size to your custom defined variable.



What you should have after these steps is something like what is below.



There are a couple things to think about when making a crossover strategy.

1. Do you want to close an open order if the MACD crosses the opposing way?

a) If not, then you need to think about other closing criteria.

2. What stop-loss and take-profit do you want?

3. How much of your account are you willing to risk on 1 trade?

Strategies can get quite complicated in the logic they need to operate to not lose you money, so I would recommend learning how to implement them for at least a few months before you even try to use them live. You will ALWAYS want a stop-loss in place. As always, you need to be aware that there are inherent risks associated with live trading as well as automated trading.

It is difficult to explain everything from scratch, and as such I would strongly recommend you to read the help guide, and to view several videos on the subject of constructing strategies with the strategy wizard.

Help Guide : (Select Operations > Strategy Wizard)

Video Library : (Select Operations > Strategy Wizard)

Webinars : (Look for Automated Strategy Development Webinar times)

We have a great webinar covering similar material that I have covered in this post on 9/06 @ 5:30 PM EDT.

Let me know if I can assist further.

[monkey180]

Hi there,

Thanks for the detailed reply, much appreciated.

For the MACD Crossover, it is when the Lines Cross, and not when crossing the 0 Line:

http://imageshack.us/photo/my-images/94/examplewv.jpg/

Sorry to be annoying, but could you amend and instructions and screen shots in light of this. Thanks

For example if there is a stop loss of 10, and a limit of 10, and none of these are hit before the next crossover, AT the next crossover would like to cancel the current open order, and replace it with the corrosponding opposite order.


For example,

A crossover happens, and it goes long, the profit is +10, and hits the limit of +10, then the order is exited, BUT if an order is exited because it hits a stop, it does NOT open an opposite trade then, BUT waits for the next crossover.

Lets pretend that I would want this on the FTSE 100, I would want a 10 point stop loss with a 10 point limit.


Thanks
[IMG]file:///C:/Documents%20and%20Settings/Ahh/My%20Documents/My%20Pictures/EXAMPLEW.JPG[/IMG]

[NinjaTrader_AdamP]

I am happy to assist you.

Of course, and don't worry you aren't annoying me. It is our goal at NinjaTrader to offer a superior standard of support.

So you want to enter when the MACD lines crosses above/below the MACD average line?

The procedure is very similar, however now you no longer need a zero-line variable. Your variables should look like the following.



Now you want to setup your buys similar to this :



Then, you want to setup your sells similar to this :



Next, you will want to setup your take-profit and stop-loss :



Then click "compile"! Let me know if there are errors.

It is important to note the following :

"Entry Signal" is a string of text that identifies an order or action. If you want to close an order linked to whatever the entry signal is, you must set the "From entry signal" to the same name as "Entry signal".

For example, if we enter a long with the "Entry Signal" = MACDLONG, then whenever you reference closing a long, you must put "From Entry Signal" = MACDLONG.

Please let me know if I can assist further.

[monkey180]

Hi there,

Thanks,

http://www.ninjatrader.com/support/forum/attachment.php?attachmentid=19376&d=1314808197

I was wondering in the "Do the Following" Box, how do I get that "MACDLONG" or "MACDSHORT" Text, because I think that it affects the stop losses.


Also what is a tick, if we take the NASDAQ 100 E Mini For example, is a tick a point?

I would want adjust my stops and limits, with points value like on indercies.


Thanks

[monkey180]

It is okay, I have solved it.

How do I copy a strategy?

[NinjaTrader_Matthew]

Can you clarify why you want to copy the strategy? Are you wanting to use these same conditions and events into another strategy? Or are you wanting to run more than one copy of this same strategy?

[monkey180]

Hi there,

Yes sort of, how would I open 2 positions at the same time (when a crossover happens), both with different stop loss and order size, on the same instrument?

And also yes, If I simply want to copy that strategy, call it a different name, and use it on another instrument.


Thanks for you help.

[NinjaTrader_Matthew]

monkey180,

If you wanted to open 2 positions when the condition is met, you would need to create a new Buy or Sell order with a different entry signal name.

So where the signal is true and you configured the 'Do the following' and have EnterShort with the signal name MACDSHORT, you would create that again and call it MACDSHORT2 for example.

You do not need to copy the strategy and rename it to run it on another instrument. When setting up the strategy you have the option to change the instrument it is running on.

[zhawenx]

Hi there,

The strategy works well for 1-min chart. What if I want to have a second confirmation signal from a 5-min chart with similar condition? Say MACD is above or below Avg? How can this be added in Strategy Wizard? Much thanks.

[NinjaTrader_AdamP]

zhawenx,

Unfortunately there is no way to do this without custom programming.

Please see the following link : http://www.ninjatrader.com/support/h...nstruments.htm

Please let me know if I may assist further.

[zhawenx]

I am pretty sure there exist Ninjascripts for this sort of strategies. I am only interested in MACD. I found one MTF with SMA, but it does not help. MACD is more complicated and you need to define Fast, Slow, Smooth and Avg, etc. I am just not good at playing with the coding. Does anyone know where to find a MTF MACD Ninjascript that I may learn something from? Would appreciate any help.

[NinjaTrader_AdamP]

zhawenx,

Im sure something like this exists in our forum.

Here is a link to some educational resources on programming in NinjaScript.

http://www.ninjatrader.com/support/helpGuides/nt7/index.html?educational_resources.htm

Please let me know if I may assist further.