Overview
The MACD Trading bot uses one of the most popular technical indicators that combines trend-following and momentum characteristics. It generates signals by comparing two momentum lines: the MACD line (the difference between two moving averages) and its signal line. The bot enters positions when the MACD line crosses above its signal line and exits based on either MACD crossovers or specified profit/loss targets.
Details
The MACD indicator consists of three components:
MACD Line: Difference between fast and slow EMAs
Signal Line: Moving average of the MACD line
Histogram: Difference between MACD and Signal lines
Trading signals occur when:
Buy Signal: MACD line crosses above Signal line
Sell Signal: Either:
MACD line crosses below Signal line (indicator-based exit)
Price reaches profit target or stop loss (target-based exit)
How to Configure the Bot
General Settings
Exchange Platform: Select your preferred exchange
Trading Account: Choose the account for bot operations
Market: Select the trading pair (e.g. BTC/USDT)
Starting Capital: Amount of quote currency to allocate
Full amount is used for purchases
Profits are automatically reinvested
Strategy Settings
Candle Timeframe: Chart interval for analysis
Options: 1m, 5m, 15m, 1h, 4h, 1d
Lower timeframes = more frequent signals
Higher timeframes = stronger but fewer signals
MACD Fast Period: Shorter-term EMA period
Default: 8 periods
Range: 2-200 periods
More responsive to recent price changes
MACD Slow Period: Longer-term EMA period
Default: 16 periods
Range: 2-200 periods
Provides trend context
MACD Signal Period: Signal line smoothing
Default: 5 periods
Range: 0-200 periods
Smooths MACD line for signal generation
Exit Strategy: Choose between:
Profit Target or Stop Loss: Exit at specified profit/loss levels
Indicator Confirmation: Exit on MACD crossover signals
Cooldown Period: Candles to wait after closing a position
Helps avoid false signals
Set to 0 for continuous trading
Profit & Risk Management
(Only visible when using "Profit Target or Stop Loss" exit strategy)
Profit Target: Percentage gain to trigger position close
Default: 1%
Can set values above 100% for longer-term trades
Stop Loss: Percentage loss to trigger position close
Default: 0.5%
Set to 100% to effectively disable stop loss
Frequently Asked Questions
How do the MACD periods work together?
The relationship between periods affects signal generation:
Fast Period: Shorter period = more responsive to price changes
Slow Period: Longer period = better trend identification
Signal Period: Shorter = faster signals, longer = fewer false signals
Common combinations:
Aggressive: 5, 13, 3 (more signals)
Standard: 12, 26, 9 (balanced)
Conservative: 8, 16, 5 (fewer false signals)
Which exit strategy should I choose?
Indicator Confirmation:
Better for trending markets
Lets profits run during strong trends
More natural exits based on momentum shifts
May give back some profits on reversals
Profit Target or Stop Loss:
Better for ranging markets
Locks in profits at specific levels
Clear risk management
More predictable trading outcomes
How should I choose timeframes?
Consider your trading style:
Scalping:
Use 1m-5m timeframes
Tight profit targets (0.1-0.5%)
Very tight stop losses
Many trades per day
Day Trading:
Use 15m-1h timeframes
Moderate targets (0.5-2%)
Standard stop losses (0.5-1%)
Several trades per day
Swing Trading:
Use 4h-1d timeframes
Larger targets (2%+)
Wider stop losses
Fewer trades per week
What's the purpose of the Cooldown Period?
After closing a position, the bot waits for the specified number of candles before taking new trades. This helps:
Avoid whipsaw markets
Reduce false signals
Allow trends to establish
Minimize trading fees
How does capital management work?
The bot:
Uses entire available capital for initial purchase
Updates available capital after each trade
Automatically reinvests profits
Reserves 0.5% for trading fees
Remember that MACD is a momentum indicator that works best in trending markets. In sideways or highly volatile markets, consider:
Using longer timeframes
Implementing longer cooldown periods
Setting appropriate profit targets and stop losses
Combining with other indicators for confirmation