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J. Risk Financial Manag. 2018, 11(3), 56; https://doi.org/10.3390/jrfm11030056

Take Profit and Stop Loss Trading Strategies Comparison in Combination with an MACD Trading System

1
Department of Electrical and Computer Engineering, Democritus University of Thrace, 67100 Xanthi, Greece
2
COSMOS4U, 67100 Xanthi, Greece
*
Author to whom correspondence should be addressed.
Received: 22 August 2018 / Revised: 14 September 2018 / Accepted: 17 September 2018 / Published: 19 September 2018
(This article belongs to the Special Issue Empirical Finance)
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Abstract

A lot of strategies for Take Profit and Stop Loss functionalities have been propounded and scrutinized over the years. In this paper, we examine various strategies added to a simple MACD automated trading system and used on selected assets from Forex, Metals, Energy, and Cryptocurrencies categories and afterwards, we compare and contrast their results. We conclude that Take Profit strategies based on faster take profit signals on MACD are not better than a simple MACD strategy and of the different Stop Loss strategies based on ATR, the sliding and variable ATR window has the best results for a period of 12 and a multiplier of 6. For the first time, to the best of our knowledge, we implement a combination of an adaptive MACD Expert Advisor that uses back-tested optimized parameters per asset with price levels defined by the ATR indicator, used to set limits for Stop Loss. View Full-Text
Keywords: algorithmic trading; take profit; stop loss; MACD; ATR algorithmic trading; take profit; stop loss; MACD; ATR
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Vezeris, D.; Kyrgos, T.; Schinas, C. Take Profit and Stop Loss Trading Strategies Comparison in Combination with an MACD Trading System. J. Risk Financial Manag. 2018, 11, 56.

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