By Micah
CEO of Wall Street io
CEO of Wall Street io
AAPL MACD 1 Year Backtest Results
I've just backtested the last year of AAPL Trading against the MACD indicator and I have some interesting results to report.
Rules of Backtest: Buy when MACD lines cross to the bulls (buy at close). Short when MACD lines cross to the bears (sell at close).
Buy and Hold May 5th 2015 to May 5th 2016 -$32.80... OUCH
Buy when MACD crossed Bullish: 2 Wins 7 Losses Net Gain +$2.90... This would of saved you a ton of cash this last year! Check out batting average though, you would of had 7 losses but still made money because the 2 winners were so big.
Sell short when MACD crossed Bearish: 4 Wins 4 Losses Net gain +$34.43
Totals: Total gain getting long and short with MACD +$37.33 compared to a -$32.80. Your batting average would of been 35%, that's 17 total trades taken with 6 wins and 11 losses. Really goes to show that if you have a system (or even simple indicator) and you keep your losses small you can still make money, even if your batting average is way below 50%.
Click here for my free MACD guide!
Trade Safe,
Micah