200 Day Moving Average Trading Strategy — (With Backtest And Indicator)
The main advantages of the 200 day moving average are simplicity, that it makes you ride the trend, and it makes you play defense. However, without a recession and falling prices, you are unlikely to beat buy and hold because of the many whipsaws. As with most things in life, the 200-day moving average comes with both pros and cons. The 200-day moving average strategy is no silver bullet.
Let’s test this simple 200 day moving average strategy:
Buy when the close of the S&P 500 crosses above the 200-day average,
Sell when it closes below the average.
The equity curve we found is shown below.
You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/200-day-moving-average-strategy/
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