MACD
This approach utilizes the MACD indicator, which identifies possible shifts in momentum by analyzing signals.
The Moving Average Convergence Divergence (MACD) is a technical indicator that helps traders determine potential changes in an asset's momentum. The indicator is based on the convergence and divergence of two exponential moving averages, typically a 12-period EMA and a 26-period EMA. Traders use the MACD to identify whether an asset is likely to experience a bullish or bearish trend, as well as potential trend reversals. When the MACD line crosses above the signal line, it is considered a buy signal, while a crossover below the signal line indicates a sell signal.
How to work with it
Buy method conditions
A buy order is allowed when the MACD line crosses up the signal line.
Normal constraints like "buy once, sell once" don't apply to this strategy: each time buying criteria occur, Gunbot will place a buy order as high as set in your balance settings.
Sell method conditions
A sell order is allowed when the MACD line crosses down the signal line.
Gain protection is optional for this strategy. Be aware that this can lead to sell orders below your break-even point.
Trading example
Example of how trading with this strategy can perform. Details and settings
The infographic below describes what triggers trades with this strategy.
Buy settings
Buy settings are the primary trigger for buy orders. These parameters control the execution of buy orders when using macd
as buy method.
Buy enabled
- Description
- Values
- Order types
- Name
Set this to false to prevent Gunbot from placing buy orders.
Values: true or false
Default value: true
Affects | Does not affect |
---|---|
Strategy buy | Strategy sell |
DCA buy | Stop limit |
RT buy | Close |
RT buyback | RT sell |
Parameter name in config.js
: BUY_ENABLED
Single Buy
- Description
- Values
- Order types
- Name
Enable this to restrict macd
to placing just a single buy order on the first crossup, then it will go in sell mode.
Useful when you combine macd
with a different sell method or use other parameters that prevents sell orders from happening at every crossdown.
Values: true or false
Default value: false
Affects | Does not affect |
---|---|
Strategy buy | Strategy sell |
Stop limit | |
Close | |
RT sell | |
DCA buy | |
RT buy | |
RT buyback |
Parameter name in config.js
: SINGLE_BUY
Sell settings
Sell settings are the primary trigger for sell orders. These parameters control the execution of sell orders when using macd
as sell method.
Sell enabled
- Description
- Values
- Order types
- Name
Set this to false to prevent Gunbot from placing sell orders.
Values: true or false
Default value: true
Affects | Does not affect |
---|---|
Strategy sell | Strategy buy |
Stop limit | RT buy |
RT sell | RT buyback |
Close | |
DCA buy |
Parameter name in config.js
: SELL_ENABLED
Gain
- Description
- Values
- Order types
- Name
This sets the minimum target for selling when DOUBLE_CHECK_GAIN
is enabled.
Values: numerical – represents a percentage.
Default value: 0.5
Affects | Does not affect |
---|---|
Strategy sell | Strategy buy |
RT buy | |
RT buyback | |
RT sell | |
Close | |
DCA buy | |
Stop limit | |
Parameter name in config.js
: GAIN
Indicator settings
Relevant indicators for trading with MACD.
These settings have a direct effect on trading with macd
.
Period
- Description
- Values
- Order types
- Name
This sets the candlestick period used for trading, this affects all indicators within the strategy.
Only use supported values. The trading settings editor suggests valid values for the selected exchange..
Setting a short period allows you to trade on shorter trends, but be aware that these will be noisier than longer periods.
Values: numerical– represents candlestick size in minutes.
Default value: 15
Affects | Does not affect |
---|---|
Strategy sell | RT buy |
Strategy buy | RT buyback |
DCA buy (when using an indicator to trigger) | RT sell |
Close | |
Stop limit |
Parameter name in config.js
: PERIOD
MACD Short
- Description
- Values
- Order types
- Name
The number of periods used for calculating the short-term moving average for MACD.
Values: numerical, represents a number of periods.
Default value: 5
Affects | Does not affect |
---|---|
Strategy sell | RT buy |
Strategy buy | RT buyback |
RT sell | |
Close | |
Stop limit | |
DCA buy |
Parameter name in config.js
: MACD_SHORT
MACD Long
- Description
- Values
- Order types
- Name
The number of periods used for calculating the long-term moving average for MACD.
Values: numerical, represents a number of periods.
Default value: 20
Affects | Does not affect |
---|---|
Strategy sell | RT buy |
Strategy buy | RT buyback |
RT sell | |
Close | |
Stop limit | |
DCA buy |
Parameter name in config.js
: MACD_LONG
MACD Signal
- Description
- Values
- Order types
- Name
The number of periods used for calculating the MACD signal line.
Values: numerical, represents a number of periods.
Default value: 10
Affects | Does not affect |
---|---|
Strategy sell | RT buy |
Strategy buy | RT buyback |
RT sell | |
Close | |
Stop limit | |
DCA buy |
Parameter name in config.js
: MACD_SIGNAL