This website deals with strategies for investing, especially with so called moving averages (simple and exponential ones). This site has a range of moving average backtests to aid you in development of investment strategies.

Moving averages are being used for chart analysis and as indicators since a long time, preferably to signalize trends in charts. In the past they were calculated by hand, today of course one uses. Moving averages are simple to understand but yet effective as indicator.

Motivation

There is a fundamental way of investing, which is ‘buy and hold!’. This is based on the observation that stock indices have fluctuations, but on the long term are moving upwards. So if you invest in a passive way into an index, you can (provided you wait long enough) exit at some point with a plus, even if you did invest at the current maximum (so is the knowledge after 100 years of stock indices).

But is it really necessary to take every up and downturn while being invested, wouldnt it be better to recognize the downturns and leave them out? Questions

This website aims to test stock data from the past (backtesting) and examine the following questions:

  • Is it possible even with the help of a very basic tradingsystem, based on moving averages to gain an advantage in yield compared to the buy and hold strategy (outperformance)?

  • From tradition, there are certain timewindows, and the 50 day moving average or 200 day moving average is the defacto standard. But what about the performance if you take timewindows between these values? What if you take very large timewindows?

  • How good can a certain stock index be traded with moving averages? Are there moving averages which have shown to be very good for an index?