Here  when MACD line crosses above the zero line there is a long signal (when it crosses below the zero there is a short signal) and the opposite logic is applied for closing the position.

A same direction signal - Does nothing
An opposite direction signal - Does nothing

[Opening point of the position]
Bar Opening
     Enter the market at the beginning of the bar
     Base price  -  Open

[Opening logic condition]
MACD
     The MACD line crosses the zero line upward
     Smoothing method  -  Exponential
     Base price  -  Close
     Signal line method  -  Simple
     Slow MA period  -  26
     Fast MA period  -  12
     Signal line period  -  9
     Use previous bar value  -  Yes

[Closing point of the position]
Bar Closing
     Exit the market at the end of the bar
     Base price  -  Close

[Closing logic condition]
MACD
     The MACD line crosses the zero line downward
     Smoothing method  -  Exponential
     Base price  -  Close
     Signal line method  -  Simple
     Slow MA period  -  26
     Fast MA period  -  12
     Signal line period  -  9
     Use previous bar value  -  No

Here when MACD crosses the zero line we have actually 2 signals one close signal and an open one. The first signal closes the current open position and after that (at the begining of the next bar) the second signal opens a new position but in the opposite direction.

----------------------------------------------------

You can do the same using "Close and Reverse" logic:

A same direction signal - Does nothing
An opposite direction signal - Reverses the position

[Opening point of the position]
Bar Opening
     Enter the market at the beginning of the bar
     Base price  -  Open

[Opening logic condition]
MACD
     The MACD line crosses the zero line upward
     Smoothing method  -  Exponential
     Base price  -  Close
     Signal line method  -  Simple
     Slow MA period  -  26
     Fast MA period  -  12
     Signal line period  -  9
     Use previous bar value  -  Yes

[Closing point of the position]
Close and Reverse
     Close all positions and open a new one in the opposite direction

The difference here is that in each MACD signal directly reverses the position.

---------------------------------

One more example with a "Stop Loss" level. Here the "Reversal" logic comes from
the "Reverse" logic of the opposite signal: An opposite direction signal - Reverses the position

Forex Strategy Builder v2.5.3.3
Strategy name: New
Exported on: 11/24/2007 11:52:18 PM

Market: EURUSD 1 Day
Spread: 4 pips
Swap Number: 1 pip

Intrabar scanning: Not accomplished
Interpolation method: Pessimistic scenario
Ambiguous bars: 0
Tested bars: 4723
Balance: 3044 pips
Minimum account: 0 pips
Maximum drawdown: 1591 pips
Time in position: 91 %

A same direction signal - Does nothing
An opposite direction signal - Reverses the position

[Opening point of the position]
Bar Opening
     Enter the market at the beginning of the bar
     Base price  -  Open

[Opening logic condition]
MACD
     The MACD line crosses the zero line upward
     Smoothing method  -  Exponential
     Base price  -  Close
     Signal line method  -  Simple
     Slow MA period  -  26
     Fast MA period  -  12
     Signal line period  -  9
     Use previous bar value  -  Yes

[Closing point of the position]
Stop Loss
     Exit at the Stop Loss level
     Stop Loss  -  -200

When you want to use one and the same condition to open and close a position every time when there is a signal it shows actually two things - a closing signal and an opening signal in the opposite direction. The result is a reversal strategy.

You can experiment by setting an additional "Open long positions only" filter:

A same direction signal - Does nothing
An opposite direction signal - Reverses the position

[Opening point of the position]
Bar Opening
     Enter the market at the beginning of the bar
     Base price  -  Open

[Opening logic condition]
MACD
     The MACD line crosses the zero line upward
     Smoothing method  -  Exponential
     Base price  -  Close
     Signal line method  -  Simple
     Slow MA period  -  26
     Fast MA period  -  12
     Signal line period  -  9
     Use previous bar value  -  Yes

[Opening logic condition]
Long or Short
     Open long positions only

[Closing point of the position]
Stop Loss
     Exit at the Stop Loss level
     Stop Loss  -  -200

As a matter of fact almost there is no difference between the Entry and Exit slots. The logics are same. If you want a mirror logic of opening and closing the easiest way is to use "Close and Reverse" logic.

As you wrote:

This is exactly a reversal system. The second MACD conditions will close the position but in the same time it is an opposite opening signal.

I wonder why your FSB doesn't include the ability to use the same indicators to both open and close trades, such as MACD, ADX, Momentum, etc. ?

I'm sorry I cannot understand the question. Can you explain again?

I wonder why your FSB doesn't include the ability to use the same indicators to both open and close trades, such as MACD, ADX, Momentum, etc. ?

I am currently playing with your FSB and the free MetaTrader download program for automatic trading a demo account. There are several free "Expert Advisors" (EAs) and Indicators available for trading the MT4 platform (and many more for sale) compiled to the MQL format. I am still having frustration trying to get it to trade correctly, lol.

I have played starting with a minimal 5 minute pair opening at day start and closing at day close and noted its balance and then proceeded to add indicators and limiters to maximize the improvement.

The technical indicators use the price as basis and increase some of its aspects. I've noticed years ago that adding additional indicators to a strategy do not improve it. More precisely said: we cannot use an indicator to take a decision for a trade and to confirm its signal with other similar indicator. If you play with the parameters you can receive exactly same curve shape for different indicators. I remember I've did this with RSI, Stochastic  and Accelerator Oscillator. The indicator shape was same for the three indicators.  So I thing is not necessary to include in a strategy more than 1 - 2 indicators from a given type. The opposite leads to overoptimization.

I did the test with this indicators:

[Opening logic condition]
Accelerator Oscillator
     The AC rises
     Smoothing method  -  Simple
     Base price  -  Close
     Slow MA period  -  34
     Fast MA period  -  5
     Forming MA period  -  5
     Level  -  0
     Use previous bar value  -  Yes

[Opening logic condition]
MACD Histogram
     The MACD histogram rises
     Smoothing method  -  Exponential
     Base price  -  Close
     Signal line method  -  Simple
     Slow MA period  -  34
     Fast MA period  -  5
     Signal line period  -  5
     Level  -  0
     Use previous bar value  -  Yes

I exported the indicator values: Menu [Export] -> [Indicators] to an Excel spreadsheet and set the correlation function for the AC column and MACD Histogram column: =CORREL(K1:K4729,O1:O4729)

The result is correlation of 0.89 and this was my first try. I'm pretty sure if I adjust the parameters I can achieve greater correlation.
My conclusion is that we cannot use one of this indicators to confirm the other's signal. The adding of additional indicators may not improve the strategy.

I value your experience & knowledge and welcome your and other forum contributors opinions on this.

Thank You,
Dan

Market: EURUSD 1 Hour
Spread: 4 pips
Swap Number: 1 pip

Intrabar scanning: Not accomplished
Interpolation method: Pessimistic scenario
Ambiguous bars: 1
Tested bars: 2513
Balance: 1223 pips
Minimum account: 0 pips
Maximum drawdown: 49 pips
Time in position: 83 %

A same direction signal - Adds to the position
An opposite direction signal - Does nothing

[Opening point of the position]
Donchian Channel
     Enter long at the Down Band
     Base price  -  High & Low
     Period  -  10
     Shift  -  0
     Use previous bar value  -  Yes

[Opening logic condition]
Long or Short
     Open long positions only

[Opening logic condition]
Lot Limiter
     Limit the number of position's lots
     Maximum lots  -  3

[Closing point of the position]
Take Profit
     Exit at the Take Profit level
     Take Profit  -  35

Strategy
Strategy Logic
A same direction signal - Adds to the position
An opposite direction signal - Does nothing

Opening point of the position
Donchian Channel
Enter long at the Down Band
Base price - High & Low
Period - 10
Shift - 0
Use previous bar value - Yes
Opening logic condition
Long or Short
Open long positions only
Opening logic condition
Lot Limiter
Limit the number of position's lots
Maximum lots - 3
Closing point of the position
Take Profit
Exit at the Take Profit level
Take Profit - 35

What is wrong with only Taking Profits at, say 85 pips each time, and using maximum leverage of $500 down per trade (=1:200 or .5%) and pyramiding by buying more conracts at $500 down each time you Take Profit and waiting for another promising entry trade. If you are patient and can wait for months to have a trade made and the Pair doesn't Whipsaw sideways at less than 85 pips it should prove highly profitable in the long run and with no drawdown (except for spreads & carryover pips)? If you only day trade and only take inter day profits of 85 pips, then you wouldn't even have any carrover pip charges.

What is wrong with this Strategy?

Also we use a very low leverage of 3:1 max. Meaning if you allow for three lots, and have an account of $10,000, you trade $ 10,000 lots only and that too only upto $ 30,000 ohnly. So even if you lose 300 pips on a bad trade your account is down only by 10% and thats not bad at all.

Where does Forex Strategy Builder tell you this %? Is it possible to convert the Profits and Losses it gives to this %?

Also, the Expected Return is more important than the win %.  If you only win 10% of the trades and your wins pay over  10 times your losses, then you are more profitable than winning 90 % of the time, but having wins pay only 10% that of losses.

I have played with the 4X1 strategy using FSB, but haven't found any combination of indicators that gave me near 90% wins, unless I only use 'Take Profits', which is risky because of possible large losses if that currency is suddenly devalued  and will take forever to regain its previous price.

I realize you probably already know these things and have more Forex experience than I do. I am only pointing out these things for the benefit of other newbies.

Thank You for your suggestions.

1. Trade one currency pair only
2. Trade in one direction only(long or short depending on which currency is doing well, eg trade against the dollar today as it is having a downward trand today against the euro, chf, etc. Use fundamental analysis for picking the currency trend)
3. Trade one lot only at a time
4. 1% of your account in a transaction(this could go upto 10% if you want to take additional risk)

This strategy generates profits every time, in every currency pair
Leverage should never be more than 10:1 although fx allows upto 400:1, leverage can kill any trader mighty quick

More has been mentioned in the book " Bird watching in Lion country"

The entry strategy can be decided by the trader(I prefer donchian break outs), this system gives the rules for trading discipline

Happy trading and testing