MACD indicator strategy

Idea

Buy the stock on the "bullish" crossover and sell on the "bearish" crossover.
A bullish/bearish crossover occurs when the MACD line crosses up/down through the MACD average line, respectively.

Read more on the MACD and the strategy on the Wikipedia website.

Parameters
Example   Test it!

Strategy

Invest in Facebook (FB) for the period of 3 years using the standard MACD(12,26,9) indicator strategy.

Simulation on a single period

Note: We quote the results for just the most recent 3-year period from 2016-02-25 to 2019-02-24. Review the simulation for other periods.

Key indicator Value Description
Annualized return -5.08% Compound annual return (CAGR) over the period
Max drawdown -28.13% Maximum loss relative to the initial value experienced over the period

Statistical simulation

Note: We simulate over all 3-year periods since Facebook's IPO in 2012.

Key indicator Value Description
Percentile 20% of annual return 3.03% 80% of the periods produced this annualized return (CAGR) or better
Percentile 20% of max drawdown -14.68% 80% of the periods experienced this max draw-down (relative to the initial investment) or better