Reacting To Youtubers Popular MACD Day Trading Strategy (Why Back…

Traders, this is a very important video as it highlights the important of Backtesting properly. A lot of videos on the internet show …

18 thoughts on “Reacting To Youtubers Popular MACD Day Trading Strategy (Why Back…”

  1. Sample size and hindsight bias almost never get mentioned by trading YouTubers and countless accounts have probably been blown because of it. I love the NNFX channel, but I have to fight the urge to ask him wtf he's doing whenever I watch his indicator videos. He'll report like a 20% return on 15 trades over the course of a year AFTER optimizing indicator parameters and call it decent.

    Anyway, great videos on your channel. Keep it up.

  2. The vast majority of what you're critiquing here in terms of the trades he's taking are simply down to a flat EMA/MACD line, low MAC value and/or ambiguity in the trading signal, and the TR guy clearly says that in those cases you don't take the trade. He also specifically says it is a trending market tool so shouldn't be used in chop or consolidation, rules he follows in back-test. The bits where you say "you'd take these trades and get multiple losses" are actually just examples of where he actually follows the rules he already established, so the only thing you're highlighting is that you don't understand the strategy in its finer details. He also states in a different video about the MACD strategy that large preceding moves are indeed something that invalidates entry using this strategy. There are also quite a number of times where you completely misinterpret the candlesticks that the MACD cross actually align with to pretend there was an entry where there isn't. I think on the whole you're approaching the strategy as a bot would, as if surrounding market conditions don't play any role in trade-entry. This is disingenuous because it specifically contradicts the strategy laid out in the TR video.

    I think there is valid criticism of the TradingRush MACD video to be had when it comes to where he sets his stop-losses etc, and you touched upon that. The other issue with it is it gives so few trading signals, but that's inherent to it because when you analyse what it's actually doing, it is finding relatively strong pull-backs within existing strong trends, which tend to be rare. The gamble you're taking when trading with it is that the trend will continue after the pull-back as opposed to being a trend reversal. In general terms though the strategy does work and I have been able to replicate the win-ratios he gets both in extremely honest back-testing and live trading.

  3. i don't know if you haven't noticed. but at some point in the video, he clearly states that don't take the trade when there is a crossover in the 200ema and low MACD columns bars.

  4. Hey, Great video. Im trying to automate my strategy and the backtesting (which is not manual) are giving me good results. Somebody told me that backtesting MACD giving false results because live trading wont give you the same results. Im not sure about that, because eventually my strategy entered a position which had a results, no too much space to go left or right in these stuff. what do you think?

  5. I have used EAs to test many of these strategies from TR and others and never been able to get anywhere near their results
    When I point this out they either don't respond or say that my EA is faulty
    When I offer to send them the code they go quiet

  6. I find this video to be poorly constructed because you've either intentionally or unintentionally left out a key aspect to Trade Rush's strategy, He states in the video you are critiquing that once the trade reaches a 1:1 RR he takes 25% off the trade and moves his SL to breakeven. That addition to the strategy is key and helps deal with drawdown significantly, I also found it disingenuous from you when you mentioned you won't know when the market will get choppy based on this strategy inferring that many trades will fail due to this and yet later in the vid admit you can filter the chop based off the 200 EMA slope….. that is part of the strategy, hell that is basic trend based trading no matter the strategy. I enjoyed the vid overall and liked the intentions but the omission of such an important part of this trade strategy makes this review useless imo. Either way thx for the content.

  7. Hindsight backtest like that is horrible. Using tradingview bar replay would work so well… I used to think trading rush is good but after I have tradingview bar replay it disagree with his method

  8. Trading Rush is most likely paid. From a Broker for those videos. Which is a bad thing for any Beginning trader.

  9. Manual backtest is garbage. You can trust only a robot like ea or tradingview strategy tester cuz it is not biased, has no emotions, and follows the rules strictly. That's what I am doing and start to get way better results.

Comments are closed.