At The Close by Wayne Whaley
ARTICLE SYNOPSIS ...At The Close by Wayne Whaley
Can a simple and popular strategy such as the 200-day moving average crossover outperform a buy & hold strategy?
The trend is your friend" is one of the first rules in trading. Given the big moves in commodities in 2009, I wouldn't be surprised to discover that a lot of trend-following systems had a good year. One trend-following strategy that is followed by many technicians is the 200-day moving average crossover strategy. That is when you would go long when the tradable in question is above its n-day moving average and either move to cash or go short when it i...