We use a very similar Signal, but one with more details.



Issue 1: MACD is only looking at 12 vs 26 day average. Our signal is safer as it looks at a 200 day average.

Issue 2: MACD often keeps on buying, even when there is an uptrend again (see explanation below).


The top one is our signal, the bottom one is MACD (and in between is RSI).

As you can see, our signal is very similar as MACD in terms of forecast of results.
Our signal however usually stops buying when the trend is reversed and the markets are going green again.
This is to prevent the bot from buying when the market goes positive again, as the bot cannot know whether it's a minor correction on a longer downtrend or a real correction.


Humans would start buying immediately when the graphs start increasing again, but at this time you cannot predict what the market will do, will the uptrend continue or not...

Our bot goes against humans: it buys when the markets are dropping and stops when humans start buying.


Second example:

On 22/06 MACD wouldn't have bought a new position when the market started increasing again, while our bot did:

In the top graph the green bar is still below the green bottom line => buy
In the bottom graph the red bars are over a longer period, so he would buy only in darkred (or also in lightred, depending on the settings), but he would be buying a bit more as a gamble.