Not exact matches
Longer - term traders or investors don't want as many trade signals; therefore, a
simple moving average that is slow to react to short - term price fluctuations is generally preferred.
Holding only 2 ETFs increases portfolio volatility, which should be expected, but
did not necessarily increase returns versus buy and hold or the 10 month
simple moving average system.
Does simple technical analysis based on
moving averages work on high - frequency spot gold and silver trading?
One other way, that most people don't have the time for or don't want to
do because it is a pain in the butt... if the market keeps
moving like this, a
simple moving average cross system using «some» time frame, used to «just follow price», buying / selling as price
moves above / below the MA cross, works very well, using a stock index ETF or the futures.
Holding only 2 ETFs increases portfolio volatility, which should be expected, but
did not necessarily increase returns versus buy and hold or the 10 month
simple moving average system.
Much research has been
done giving credence to draw down reduction strategies using
Simple Moving Average and Absolute Momentum.
I pay more attention to trendlines and prior highs and lows, but I
do look at a 20 - bar exponential
moving average on intraday charts and 50 -, 100 -, 150 - and 200 - bar
simple moving averages on daily and weekly charts.
Even a crude market timing strategy such as an 80 day
simple moving average trendline crossover of the S&P 500 index would have
done far better than a buy and hold approach.
I
do not track hypothetical portfolio returns, but instead track the 10 month
simple moving average for each ETF.
Does identification of trends in the CBOE Volatility Index (VIX) via
simple moving averages (SMA) support effective timing of the U.S. stock market or VIX futures exchange - traded notes (ETN)?
They don't always use it in the same way, i.e. traders of all levels of ability can successfully deploy
simple and exponential
moving averages.
-- only energy balance matters (here comes the school of people saying that the system is trivially
simple because it exchanges energy only by radiation)-- only «equilibrium» matters (here comes the school of people who compare the system to a small ball slightly
moved away from its equilibrium position inside a spherical bowl)-- space doesn't matter (this is a tautology because if a 3D system can be reduced to 1D and still predicted, then the «neglected» 2 D obviously didn't matter)-- from the above follows also necessarily that everything that happens in the real 3D world can only be noise (here comes the school of people who say that everything
averages out)
For the record, in the case of this «divergence», after dropping that post 1960 portion, the comparison between the reconstruction and the temperature record was
done using decadal «smoothing» (basically weighted
moving averages) of both series correlated on an annual basis for the 80 year period 1880 to 1960 so that the reported correlation was extremely exaggerated and not interpretable as a
simple correlation might be.