How to backtest a MACD Trading Strategy in Excel – Part 1

Part 1 of a video providing a step-by-step guide showing how to build a backtest model using Excel. The backtest is using weekly historical data from the S&P …

8 thoughts on “How to backtest a MACD Trading Strategy in Excel – Part 1”

  1. if you would have bought 1000$ at 18$ in 1950 – you would have made 78 times the money, not 16 times as with thestrategy.

    than you for the video thought, really helpfull

  2. MACD trading strategy patterns are viewed as the money making mascots of price action trading!! :O why would we ditch them? The most common trap for price action traders is trading candlestick patterns ONLY, absent of any other kind of analysis or signal. however… if they are your only reason for entering a trade, you will fall into a very frustrating grind. because they really do not have much of an edge in the markets when isolated. Go checkout IQD Momentum strategy signal, read ebooks analysed by authored LUKASZ WILHELM .

  3. Hi Mark. Great Video, very helpful. I was wondering how you would go about implementing this trading strategy for mutual funds. Because they trade at NAV, ATR would obviously be irrelevant. Is there an easy workaround for this?

  4. Hi Daniel. You certainly can change the model from trading long to trading short. Columns PT Price, SL Price, Trade Running and Capital will need to be amended. They will need to be changed to check the Low Price for the profit target and the High Price for the Stop-Loss. If you are interested I have just released a course in ebook format in the Kindle Store. This course deals with long and short models and goes through step-by-step how they are built.

  5. Hi Mark, would you know which parameters to change to go short based on the same histogram going from negative to positive? I've been trying to figure that out, but it seems a little difficult after a few days of trying.

  6. If I'm understanding you correctly, you're wanting to backtest a relatively young ETF for a period greater than it's existence. If that's true then you usually need to backtest a similarly managed Mutual Fund. It won't be exact but it's probably as close as you'll be able to get.

  7. Dear Mark

    How could I go on back testing a long/short strategy for 5 years when it has been runing for only 2 years using as a benchmark i.e the SP500 on weekly time frame? you feedback will be very much appreciated. Best . Sakis

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