Recently, when analyzing trading strategies, I was asked a familiar question: what is the best MACD parameter? To be honest, there’s no absolute answer, but that doesn’t mean you can set it arbitrarily.

Many people use the default 12-26-9; this set of parameters has indeed been validated by the market—fast EMA (12) captures short-term momentum, slow EMA (26) observes long-term trends, and the signal line EMA (9) filters out noise. Because everyone uses it, there’s a “consensus effect” at key signals, which is also why it’s widely applied. But the problem is, 12-26-9 sometimes reacts too slowly to the high volatility of the crypto market, especially for short-term traders.

I’ve tried several parameter combinations myself. 5-35-5 is the most sensitive, able to quickly catch trends, but it also produces more noise, making signals more prone to failure. 8-17-9 falls in between, suitable for 1-hour charts. 19-39-9 and 24-52-18 are more suitable for medium to long-term, with more reliable trend judgment but fewer signals. So, the key to MACD parameter optimization is actually finding the set that matches your trading style.

Last year, I compared Bitcoin’s half-year daily data. The 12-26-9 gave 7 clear signals within half a year, of which 2 resulted in valid golden crosses and successful rallies, while 5 failed. The 5-35-5 produced 13 signals, with 5 subsequent significant rises or falls, and the rest failed. It seems 5-35-5 generates more signals, but that also means you have to endure more false signals. During the April 10 rally, both sets caught the move, but the 5-35-5’s death cross appeared earlier, and the profit was actually less than with 12-26-9.

This highlights the contradiction in MACD parameter tuning: higher sensitivity can catch more opportunities, but also produces frequent small fluctuations. Lower sensitivity yields more reliable signals but fewer opportunities. Many fall into the trap of overfitting, adjusting parameters based on historical data until perfect, only to see the strategy fail in live trading.

My advice is to start with 12-26-9 and observe the market’s temperament for a while. If it’s truly not suitable, try 5-35-5 or 8-17-9, but be sure to backtest and review the results. Once you choose a set, don’t change it frequently unless it performs poorly. Some traders also use two MACD setups simultaneously to filter noise, which is fine, but more signals mean more complex decision-making.

There’s no ultimate answer to MACD parameter optimization—only the set that best fits you. I recommend beginners start with the default and gradually find their rhythm.