What if I told you there was an incredibly
simple moving average system that crushed buy and hold investing?
The 10 month
simple moving average system has been popularized in recent years by Mebane Faber in The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets.
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.
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.
Not exact matches
How has a
simple 10 month
moving average system performed within this portfolio?
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.
How has a
simple 10 month
moving average system performed within this portfolio?
A QTWO
simple trading
system based on the QTWO
moving average would state to sell when QTWO price drops below its MA and to buy when QTWO price
moves above its MA.
For long mean reversion
systems, Larry Connors and I used Close greater than 5 Day
simple moving average.
The K % Stochastics (also known as Fast Stochastics) iShares S&P US PR S (PFF) Trading
system is based on the crossovers of K % Stochastics (3 - bar
simple moving average applied to Raw Stochastics) and Signal Lines.
-- 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)