I would like a cBOT built that detects MACD signal line divergence with price, then executes a trade upon MACD line and Signal line crossover. Profit and stop management system automatically begins when trade is entered as such: Stop loss is placed 2 pips further away from the recent swing extreme price (thus defining the risk). A first profit target order is placed as a 1.1:1 Reward/Risk and 25% of the position is closed and stop is brought to break even. Target two is a 3.1:1 reward/risk ratio and half of the remainder position is closed. The final position is managed with a stop that advances with price (as price breaks out of a consolidation zone to a new recent high or low, then stop is moved to 2 pips away from the recent swing high's closest swing low or the recent swing low's closest swing high). A Signal line divergence in the opposite direction triggers an automatic closure of the open winning position in anticipation of the divergence resulting in a crossover trigger entry in the opposite direction.
In my manual back testing of this strategy, there is one "quirk" that needs to be accounted for. When there is a really strong divergence, sometimes the MACD line does not cross back over the Signal line but rather simply turns prior to the crossover. (ex: Bullish divergence on the signal line but the MACD histogram remains positive (blue line doesn't cross back under the red line prior to firing a signal by crossing back up over the blue line)) In such cases, I want the software to provide a trigger of when the extreme of the candle gets exceeded by 1 tick. The initial stop therefore would be 2 pips beyond the other extreme of this same candle.
I would like to be able to back test the cBOT. I would also like to be able to change MACD parameters, as well as the two hard stop profit parameters (default settings of 1.1 and 3.1). I would also like to be able to tweek the % closed at target 1 and target 2.
I would like this cBOT to be able to plug into a trading platform, do a back test, and then have the ability to produce the back test report like other BOT's have been able to show (i.e.-winners, losers, equity curve, drawdown, etc)