A Pullback Trading Strategy
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Let’s make a long-term pullback system in the S&P 500. We combine two moving averages: a long-term 200-day moving average and a short-term 20-day moving average. We like to use the 200-day moving average as a tool to play defense, ie. take us out before a major recession.
In this article, we backtest a combination of a long-term trend following system and a short-term pullback strategy: a long-term pullback strategy.
Please click here to see the backtest of the pullback trading strategy.