The MACD parameters should be set this way - stop using 12-26-9 blindly.

To be honest, most people use MACD by just copying and pasting the default parameters of the exchange (12-26-9), and as a result, they get trapped every day. This set of parameters is indeed stable, but it is simply not sensitive enough for the fluctuations in the crypto world.

The Pitfalls of Parameter Selection

12-26-9 (standard configuration): Few signals but relatively high accuracy, suitable for lazy people and beginners. The downside is that it is slow and often misses the trigger points.

5-35-5 (Short-term Hunter): Signals increase by 3 times, allowing for quicker capture of fluctuation points. However, there are also more traps, making it easy to be deceived by false breakouts.

8-17-9 (Balanced Type): A middle ground preferred by forex traders.

24-52-18 (Long-term bottom fishing): Reacts so slowly that you question your life, but each signal is of a large scale, suitable for swing traders.

A Heartbreaking Truth

There is no such thing as “optimal parameters.” Many people will tell you that a certain set of parameters worked perfectly in the past three months, but chances are it is overfitting—that is, tweaking based on historical data repeatedly, and then when applied in real trading, it leads to failure. This is similar to solving problems by looking at the answers.

How to find what suits you

1. First observe for a week using 12-26-9, familiarize yourself with the indicator logic.
2. Choose according to trading style: Use 5-35-5 for the 1-hour chart, 12-26-9 for the daily chart, and 24-52-18 for the weekly chart.
3. Must backtest, but do not over-optimize parameters
4. Use a set for a long time; if the performance is not good, then change it. Frequent parameter adjustments will only deceive yourself.

Core Recommendations

Newbies should just stick to 12-26-9 and not mess around. For short-term trading, switch to 5-35-5. Getting the parameters right is just the first step; it also needs to be combined with stop-loss and position management basics. Simply relying on MACD parameter optimization won't make you big money.