MACD Volume Strategy (BBO + MACD State, Reversal Type)

Overview
MACD Volume Strategy (BBO + MACD State, Reversal Type) is a momentum-based reversal system that combines MACD crossover logic with volume filtering to enhance signal accuracy and minimize noise. It aims to identify structural trend shifts and manage risk using predefined parameters.

※This strategy is for educational and research purposes only. All results are based on historical simulations and do not guarantee future performance.

Strategy Objectives
Identify early trend transitions with high probability

Filter entries using volume dynamics to validate momentum

Maintain continuous exposure using a reversal-style model

Apply a consistent 1:1.5 risk-to-reward ratio per trade

Key Features
Integrated MACD and volume oscillator filtering

Zero repainting (all signals confirmed on closed candles)

Automatic position flipping for seamless direction shifts

Stop-loss and take-profit based on recent structural highs/lows

Trading Rules
Long Entry Conditions
MACD crosses above the zero line (BBO Buy arrow)

Volume oscillator is positive (short EMA > long EMA)

MACD is above the signal line

Close any existing short and enter a new long

Short Entry Conditions
MACD crosses below the zero line (BBO Sell arrow)

Volume oscillator is positive

MACD is below the signal line

Close any existing long and enter a new short

Exit Rules
Take Profit (TP) = Entry ± (risk distance × 1.5)

Stop Loss (SL) = Recent swing low (for long) or high (for short)

Early Exit = Triggered when a reversal signal appears (flip logic)

Risk Management Parameters
Pair: ETH/USD

Timeframe: 10-minute

Starting Capital: $3,000

Commission: 0.02%

Slippage: 2 pip

Risk per Trade: 5% of account equity (adjusted for sustainable practice)

Total Trades: 312 (backtest on selected dataset)

※Risk parameters are fully configurable and should be adjusted to suit each trader's personal setup and broker conditions.

Parameters & Configurations
Volume Short Length: 6
Volume Long Length: 12
MACD Fast Length: 11
MACD Slow Length: 21
Signal Smoothing: 10
Oscillator MA Type: SMA
Signal Line MA Type: SMA

Visual Support
Green arrow = Long entry

Red arrow = Short entry

MACD lines, signal line, and histogram

SL/TP markers plotted directly on the chart


Strategic Advantages & Uniqueness
Volume filtering eliminates low-participation, weak signals

Structurally aligned SL/TP based on recent market pivots

No repainting — decisions are made only on closed candles

Always in the market due to the reversal-style framework

Inspirations & Attribution
This strategy is inspired by the excellent work of:

Bitcoinblockchainonline – “BBO_Roxana_Signals MACD + vol”
Leveraging MACD zero-line cross and volume oscillator for intuitive signal generation.

HasanRifat – “MACD Fake Filter [RH]”
Introduced a signal filter using MACD wave height averaging to reduce false positives.

This strategy builds upon those ideas to create a more automated, risk-aware, and technically adaptive system.

Summary
MACD Volume Strategy is a clean, logic-first automated trading system built for precision-seeking traders. It avoids discretionary bias and provides consistent signal logic under backtested historical conditions.

100% mechanical — no discretionary input required

Designed for high-confidence entries

Can be extended with filters, alerts, or trailing stops

※Strategy performance depends on market context. Past performance is not indicative of future results. Use with proper risk management and careful configuration.