One of my favorite tools for potentially reducing portfolio volatility and drawdown is to use the 10 month
simple moving average strategy, popularized in recent years by Mebane Faber in The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets.
Not exact matches
Well, for a
simple but effective
strategy, consider using the 10, 20, and 50 - period
moving averages on the hourly chart.
A
simple moving average is used as it takes out the volatility i - e the outliers of any specific forex asset and shows a smooth value using which investment
strategy for forex can be determined.
Two types of
moving averages the
simple moving average which refers to
average over a given number of time periods coupled with the exponential
moving average which reflects the most recent time periods more significantly are used to shape forex
strategies.
It is a popular swing trading
strategy wherein
simple moving average is used to smoothen out the price data over a period of, say, 10 days or 20 days.
Much research has been done giving credence to draw down reduction
strategies using
Simple Moving Average and Absolute Momentum.
Indicators: Pin Bar for MT4 (optional), 200
simple moving average Time Frame: 5 Min Trading sessions: Euro, US Assets: You can use this
strategy on any pair (EUR / USD, GBP / USD, USD / JPY,...) Expiry time: 15 min (3 bars)
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.
Strategy 1 is to buy the ETFs when they are above their respective 10 month
simple moving average (SMA) at month end.
The
strategy is to buy / hold each ETF when it closes the month above its 10 month
simple moving average.
As I discuss frequently, my exit
strategy involves the monthly close on the 10 - month
simple moving average.
A well - combined
simple moving average indicator alongside price action trading is the core of this trading
strategy.
A
simple investment strategy would be using EEM (iShares Emerging Markets) and 200 Simple Moving Av
simple investment
strategy would be using EEM (iShares Emerging Markets) and 200
Simple Moving Av
Simple Moving Average.
Learn a variety of trading
strategies with basic indicators such as RSI, Stochastic,
Simple Moving Averages, MACD, Bollinger Bands,...
This trend following
strategy is based on the crossover of 3
simple moving averages.
This
strategy however, combines the pin bar, detrended price oscillator and custom
moving averages into one
simple trading
strategy.
A
move to
simple systematic rebalancing to fixed weights increases the value add by 0.14 % and 0.26 % relative to the buy - and - hold and
average factor
strategies, respectively.
Our first test was the
Simple Moving Average on 15 second charts in NT8 with Rule 6 which waits for the
strategy to be down $ 50 per contract before getting in.
While this
strategy may be
simple, the
moving average needs to be exponential.