The first two trades are lost, but the MACD indicator showed the reversal point quite accurately, but the downward momentum was not strong enough. This is because we are breaking one of the most important rules in trading, “Don’t trade against the trend”. But let’s see what happens if we dare to go against the trend.
Surprisingly the Flipped MACD Strategy is still winning a decent amount of trades. It loses multiple trades in a row when the price is trending, and then wins a couple of trades at the end of the trends. In the range market, it gives better entry signals than some of the worst trading strategies we have tested 100 times.
If this flipped MACD strategy can get a 40 or higher win rate, it will be better than the worst strategy that actually gives entry signals in the direction of the trend. Interestingly, the worst strategy we have tested is the MACD Zero Lag. That strategy only got a 33 percent approximate win rate.
Since we are trading against the trend, you might think that the win rate will be lower than breakeven, which in this case is 40 percent because of the 1.5 to 1 reward risk ratio, but interestingly the MACD was showing the end of the upward and downward moves quite accurately. Many times the price did not touch the profit target because of the stronger pressure in the direction of the trend, but the Flipped MACD strategy managed to win multiple trades at the end of the trends.
So if you take trades in the opposite direction of the trend with one of the best trading strategies we saw on the Trading Rush Channel, you most likely will get a breakeven percentage, because the Flipped MACD didn’t make or lose any money after 100 trades. That’s all!