MACD indicator strategy


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.

Example   Test it!


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