Automated Trading Strategy #2
This strategy combines momentum with trend strength analysis.
Important: There is no guarantee that ATS strategies will have the same performance in the future. I use backtests and forward tests to compare historical strategy performance. Backtests are based on historical data, not real-time data so the results shared are hypothetical, not real. Forward tests are based on live data, however, they use a simulated account. Any success I have with live trading is untypical. Trading futures is extremely risky. You should only use risk capital to fund live futures accounts and if you do trade live, be prepared to lose your entire account. There are no guarantees that any performance you see here will continue in the future. I recommend using ATS strategies in simulated trading until you/we find the holy grail of trade strategy. This is strictly for learning purposes.
As a quick reminder, we’re on the hunt for the holy grail of automated trading strategy. If you have any questions, start with the FAQs and if you still have questions, feel free to reach out to me (Celan) directly at AutomatedTradingStrategies@protonmail.com.
Strategy 2 was updated on January 8, 2026. For the updated version, click here.
This strategy combines momentum analysis (MACD) with trend strength analysis (ADX/ADXR) to identify potentially strong trend movements. The theory is that:
For long trades, you want bullish momentum (MACD above signal) combined with increasing trend strength (ADX crossing above ADXR)
For short trades, you want bearish momentum (MACD below signal) combined with decreasing trend strength (ADX crossing below ADXR)
This approach aims to find stronger, more reliable trends by confirming momentum signals with trend strength indicators.