Recently, while backtesting trading strategies, I revisited the issue of MACD parameters and found that many people's understanding of this indicator still stays at the default setting stage. In fact, there is much more room to adjust MACD parameters than most think.

MACD itself consists of a fast line, a slow line, and a histogram. The default 12-26-9 is indeed very versatile, but for high-volatility markets like cryptocurrencies, sometimes the response can be a bit sluggish. I often encounter this problem in short-term trading; by the time a signal appears, the market has already moved a significant distance.

This is also why many short-term traders switch to combinations like 5-35-5 or 8-17-9. More sensitive MACD parameters can catch trends faster, but the cost is increased noise, which sometimes makes it look like a golden cross, only to be quickly reversed. Conversely, less sensitive parameters produce fewer signals, but when they do appear, they tend to be more reliable.

I conducted a comparative backtest using MACD (12-26-9) and MACD (5-35-5) to analyze Bitcoin's daily chart in the first half of 2025. The 12-26-9 showed 7 clear signals over this period, including 2 effective golden crosses, both of which led to successful rallies afterward. The 5-35-5 generated 13 signals—twice as many—but only 5 were truly effective; the rest were small gains, small drops, or outright failures. During the rally starting on April 10, both sets of parameters caught the move, but the death cross for 5-35-5 appeared earlier, so the profit was actually less than with 12-26-9.

Many people, after adjusting MACD parameters, start looking for the so-called "optimal parameters," but this is actually a misconception. Different markets and timeframes have vastly different characteristics, and there is no single set of parameters that performs best in all situations. Even more dangerous is overfitting—tweaking parameters to perfectly fit past data, which often results in failure in live trading.

MACD parameters should be flexibly adjusted based on your trading style and market conditions. If your usual parameters have recently become less effective, try fine-tuning them and reviewing past trades—you might discover something new. But avoid changing parameters too frequently, as this can turn the indicator into a stumbling block in your trading.

For beginners, I still recommend starting with the default 12-26-9. This set offers the highest stability and market consensus, and key signals tend to attract more attention, making it more valuable as a reference. Once you gain a deeper understanding of MACD, you can adjust the parameters according to your trading habits.

Someone asked whether it’s possible to use multiple MACD parameter sets simultaneously. It’s possible, but this means signals will increase dramatically, making judgment more difficult. Unless you are very familiar with this approach, it’s better to thoroughly understand one set of parameters first.