5 BEST Moving Average Strategies (That beat buy and hold)
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- Опубликовано: 14 май 2024
- 5 BEST Moving Average Strategies (That beat buy and hold)
Steve Burns and Holly Burns take us through 5 of their best moving average strategies during a 16 year period, covering bull, bear and sideways moving stock markets.
We also add the 2020 pandemic crash period to see how the trading strategies performed.
The strategies include the 20,50,100,200 and 250 day moving averages, and moving average crossovers.
The book provides evidence to the question of can you beat a stock market buy and hold strategy.
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What kind of investment would you advise? And what is the best way to follow it?
Wow!!! I know *ROCH DUNGCA-SCHREIBER* and I have been growing with her since 2017. Her expertise has been the best for my financial journey. I have created a passive income over the years and life feels really better and easy for me. I feel so delighted to read these good reviews about her
Didn't Charlie Munger and Warren Buffett invent the strategy of buying/investing when the market is low and also buying/investing when the market is high? As Warren Buffet said, he has seen this happen many times in his life. Not an investor. My wife and i never earned more than a middle class salary. We plan to get retired at 58 with a stock portfolio worth $4M. We have never sold so much as one share of stock...
It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing....
i've been doing this same thing myself. Can't get into trouble with the IRS when I have no income and all my money is in stocks. I don't like doing the work though. Lol. So I just invest through an advisor who does the stock picking. My money grows, and I'm tax-free...
@@martingiavarini Do you mind sharing info on the adviser who assisted you? been saving for pension since age 18 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively, there are a few cars I still wish to drive, a few mega holidays, etc
@@hermanramos7092 Have you heard of‘’Catherine Morrison Evans’’ ? She gets featured regularly on CNBC. I myself use tax-deferred accounts to hold my investments. That way I avoid capital gains taxes. There are other options your advisor could brief you about....
@@martingiavarini Thank you. I just checked her out now and I've sent an email. I hope she gets back to me soon. I've been thinking of doing this for a long time now, and I've procrastinated enough already.
It's interesting that after trying so many indicators and reading so many price actions, I ultimately realized that the good old moving average was most useful.
Yeah same here, I guess it was the sense of longing, hoping to find something that really gives you the best probability out if everything. And the idea that the more unique or complicated an indicator was, meant that it was better or slightly more effective than anything else.
i use some others too but i realize that the MA's are all you need.
it's like, when you're a noob, you avoid the fight. when you're a beginner, you look for fights. when you're a master fighter, you avoid the fight too.
Don't you guys think it gives delayed signals 🤔
@@KavishJhaveri12 the signals only get bad when there are extremely bad impulse moves but at that point you'd recognize the big moves and well, personally I avoid those moments.
Filters (RSI, Stochastic, etc) only are used to provide comfort to the trader. Good traders do what is uncomfortable.
Wow - Love how you explain so simply and succinctly with the perfect amount of visuals! Thx for making it easy for everyone!
Thank you for all the amazing videos! A real gold mine of info. Priceless.
Thanks again for another amazing video! I've watch most if not all of your videos. What's most helpful about your videos, in addition to the way you make things easy to understand, is the fact that they let you see and compare different strategies easily. What I find interesting about the different strategies is that they have many elements in common. Thanks again and keep up the good work.
Thanks Mitsu - Really means a lot🙏👍
I loved this book. Thanks for breaking it down even more than my understanding.
You're so welcome!
Amazing content, with great presentation and clear explanations. Much appreciated, keep up the great work!
Much appreciated!🙏👍
Although my biggest winners have resulted from “buy and hold,” I love the simplicity of moving averages strategies.
May God bless you with even more abundance and success brother! This is an amazing very well done book summary 👌
Thanks Aymen, same to you... Much appreciated
@@FinancialWisdom is the 200 day MA used, in the experiment on historical data, a simple MA or exponential MA?
As always a simple and to-the-point explanation, with perfect graphics to go with it! Thank you 🙏
Glad you liked it!
I love your videos! Not only educational but entertaining as well!
Happy to hear that!
After a terrible 2022, shell-shocked financial backers have a lot to think about and losses to recover from. An expansion report and a wealth of other data did little to alter assumptions that the Central bank would likely keep raising interest rates regardless of whether the economy slows down. This implies that portfolios will experience more losses during the first quarter of 2023. I'm currently at a crossroads deciding whether to exchange my $250k security/stock portfolio; how might the continuous market volatility work to my advantage?
Concentrate on two main objectives. First and foremost, keep yourself safe by knowing when to sell stocks to reduce losses and maximize gains. Second, prepare yourself to gain from a market turnaround. I advise you to seek the advice of a representative or financial counselor
@@MarcusFred-wn3iv In fact, ever since Coronavirus, I've been in regular communication with financial examiners. Nowadays, buying moving stocks is quite easy; the trick is knowing when to buy and when to sell. The section and leave orders for my portfolio are made by my counsel. accumulated more than $550,000 from a $150,000 savings that was initially stale.
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Absolute gold. Thank you for the summary 👍🏻
Glad you enjoyed it!
Great video! Thank you for explaining these strategies, I always wondered about their significance.
Thanks for watching...
Great content ! Love your animations, very whimsical 😊
Been waiting for ages XD, Love ur content bru
Glad you enjoy it!🙏
Namaste brother,
Amazing effort on all videos n presentation. Thank you
You're most welcome👍
You have the best videos. Your reviews seem better than the books you are covering and they are great books. Love it!
Wow, thank you Danny!🙏👍
A really useful piece of backtesting. Thanks.
You're very welcome!
Great content. Thanks. I have a questions, which Time Frame we should plot these MAs?
Your videos is the best of the best. I appreciate all your videos.
Thanks!
First time I see one of your videos. Great content.
Awesome, thank you!
Great Presentation. Thanks for "clarifying the wisdom".
Glad you enjoyed it!
excellent. i use 10 and 20 EMA frequently
I wasn't sure which one to use, now this has convinced me.
Good to hear👍
One of the best contents on trading. Thanks a lot for the contents.
Glad you think so!🙏👍
Your content is very helpful and informative. I learned every time more and more by watching your channel, Keep uploading, please
Good to know thanks
I was waiting for your video Good work
Thank you so much 😀
Love the videos, such clean and to the point information. What's the easiest way to find these trades though? Prior to the Ma's crossing lines? Take you need to put it in a scanner but have no idea what to enter
Thanks for the educational video. I thought that the most interesting part was the illustration of how much of a drawdown the various death cross scenarios would have caused. I would have liked to have seen you illustrate how much of the recovery the various golden cross points would have missed as well.
Fair point, yes there is usually a compromise...
Thank you very much you gained a new subscriber.
Awesome, thank you!
Amazing content
Insightful video. I just want to know best how people split their pay, how much of it goes into savings, spendings or investments. I'm 27, and earn nothing less $150k per year, but nothing to show for it yet.
When people have money, they spend it. And some people spend more money when they have more of it. If you want to improve your financial management, you should consult with a financial advisor.
@@Mcllwain That's right, you can avoid the traps of lifestyle inflation by consulting an expert advisor to help you plan for your short- and long-term goals; it all comes down to proper guidance. Over the past two years and six months, I have seen my income build wealth and now have a fully paid off house and at least $650,000 in stocks. All this is the result of subsequent investments with my savings and the application of expert advice.
@@kurttSchuster Nice, who is the Financial Advisor aiding you if this is not much i'm asking? my retirement plans are going down the drain with my 401k particularly losing everything it gained ever since 2021.
@@kurttSchuster I looked up NICOLE online using her fullname and researched her accreditation. She seem very proficient, I wrote her detailing my Financial market current position, goals and scheduled an appointment. Thanks
Speaking from experience. I am you now at 50 yr old. I pushed myself in the right direction but a little late. You still have time.
1) if you do, stop drinking alcohol. PERIOD. Not even glass of wine blah blah..
2)stop smoking cigarettes/vaping if you do
3) Stop Drinking Coffee
4) stop ALL sugar consumption / Junk food / fast food
5) stop consuming meat!
6) *** EXECUTE 1-5 All at Once ***
1-5 are things I have done in life which has had a very poor Risk/Reward ratio.
There is no Longterm Reward for any of those habits (risk)
And watch your life change and watch the money you save$ go through the roof.
When your mind and your life is clear of distraction/issues you’ll see clearly what you should do to get to the life you want.
Keep in Mind that 1-5 are the most marketed habits on tv.
Best wish!
Thanks for the amazing content
My pleasure!
Your videos are super interesting, and fun to watch.
I appreciate that!
Man! I can’t thank you enough for this videos, you’re really enlightening us.
Glad to hear it!🙏👍
Great videos. Probably asked before, but what would happen to the returns if you short SPY at the cash crossover? I would love to see a video on that comparing these strategies. If you want to ignore dividends, i suppose the spx would be just as effective as a proxy. Furthermore, for a buy/short approach it would be best for an investor to avoid negative dividends and just focus on the asset value.
Thanks for this excellent video!
Glad you enjoyed it!🙏
You are simply awesome! This is the the best financial education channel out there, period
Wow, thank you!
Your content is excellent, keep going! Would rather listen to you than read! Love your videos :)
Thanks, means a lot!🙏
Clear, concise, visuals, what more do u want in a channel? Well done thank you for your effort
Thanks for watching!🙏
thanks for sharing, I'm a beginner who joined the nfc community.
I use 6, 13, and 30. Enter 50% position at the 6/13 cross and 100% position at the 13/30 cross. Then exit 100% of position when the 6/13 cross again. I also trade 5% of account equity when shorting above 200 dma and buying below. Then use 10% of account equity when shorting below 200 dma and buying above 200 dma.
Thanks you give me inspiration. I will backtest this strategy
Great presentation! Thanks
Glad you enjoyed it!👍
Hi Gareth. On review, the 200 day MA strategy only works for the pandemic crash because the dip occurred in late February 2020. If it had occurred in the first week of February 2020, the draw down would have been around 30-35% with the proposed strategy (at least by my calculations). My suggestion is that one never takes more than a 10% loss on SPY and gets out quickly at that point. Alternatively get out quick as soon as the price falls below the 200 day MA. It is always possible to buy back cheaply when the price goes back above the 200 day MA. Dealing costs for SPY are relatively low.
Thanks William, yes you are right, an element of timing luck here...
You are right indeed, a solution to that might be a simple rule of two days of closings below 200MA before seeling pos or two days of closing above to go long, wonder what would it do to the results
Another option is to use daily but with a 2-4% latch. You wait for it to drop lower than 2-4% of the DMA to get out and the inverse to get in. It minimizes whipsaw.
Or waiting on the weekly.
I think I've read somewhere that the 125 DMA offers the best Sharpe & Sortino Ratio.
I would probably use the 200DMA strategy with a trailing stop loss of 15-20% as shown in an other video to prevent bigger loss in case of crash. Would that make sense? Im studying for a job where i'll be working 1 month in- 1 month off and I'm looking for a strategy i could use while away for the month. The 200 DMA would be pretty easy to implement.
@@VinDub18 That's probably a good strategy. If you're trading an index, like SPX, you can probably afford a 10-15% stop loss (currently 400-600 points) if you're primarily a buy and hold investor. I personally think 20% is too much. (Short term traders tend to use stops below 5% for the SPX.) For buying back, which is always the tricky bit, I think you might be better off using the exponential moving average and buying when the 5 day or 10 day EMA crosses above the 200 day EMA. The 10 day gives slightly better confirmation than the 5 day, but risks buying back at a slightly higher price. This is just my own opinion and not advice. Good luck.
Your videos make books explained more easy to understand .
great thanks...
Very niceeee analysis 👌
You have made me learn so many things about the market, I cannot even put into words. You are the best channel I have ever subscribed to. My sincere gratitude towards your hard work and helping us reach new heights. Be blessed.
Wow, thank you Jay! really means the world to me that i'm able to make a difference, thanks🙏👍
Excellent presentation thanks
You are welcome!
Great work many thanks
Thank you too!
Great perspective on the handling of different ma's. However, can you discuss how these or others can be used to swing trade, holding for a few days to weeks?
It's really good....in very short you summaries soo much 👍
Thank you so much 😀
Thank you!
You're welcome!
Yet another excellent video that every investor should watch. Thanks.
Much appreciated!
Congratulation sir...nice video and very informative...keep it up...
So nice of you, i'll try..
Nice video!.....Thank you!....It effectively works on index only....If we apply it on individual stocks and waiting of one month to confirm 200MA then the drawdown will be more I think!!!
Yes, correct
Thank you very much.....
You are most welcome again Umut🙏
Great analysis, cheers
Much appreciated!
I never understood this but it’s starting to make sense
Keep on making great videos man
Thanks, i'll try...🙏
Quality stuff. Thanks
Much appreciated!
this was actually amazing.
Thanks Tom!
Amazing description
Glad you think so!
This video is an absolute gift, thank you
Thanks Art🙏
Thanks for sharing. What are the annual returns for each year from. 2000 to 2016? With starting point of 2000, the comparison is inherently biased against buy and hold. It should be compared across different time frames and starting points in addition to looking at annual returns.
love videos with statistical metrics
Thanks Tim, yes i do try, it makes them more informative i think...👍
Superb. I have been trading for more than a decade. Read everything under the sun. Your videos are too too good. 👍
Great 👍Thanks Successhighway🙏
Insightful
my mind is blown that this is actrually effective....the more you learn the less you know
the best video about MVA ever.. God bless you
Thank you!🙏
Excellent review sir.
Thank you kindly!
Dear Sir, Can you please guide or prepare video on only 50 Day Sma (price crossover sma) and aldo SMA 200, Please
Great channel!
Glad you enjoy it!
Great job!
Thanks!
Excellent work
Many thanks
Awesome content 👍🏼
Thank you 🙌
I would love to hear your thoughts on the 13 and 48 MA swing strategy and if it is as good as the Yahoo post, (yes its old)
Great Video as Always! I have read this book but it was very nice to see your summary. The 200DMA strategy is certainly good for an investor in ETFs with not a lot of time to monitor the markets.
Thank you.
Glad you enjoyed it!
@@FinancialWisdom question its the DMA the same as the Moving Average indicator? I did not find something similar on think or swim or the trading view app
@@MrKahov yes they are the same, a 200 period moving average on the daily chart is the 200DMA. on a hourly chart its the 200 Hourly moving average.
Wow, I wasn't sure Holly & Steve were widely known! I found most of their Stolly Media output informative, especially their classic 'Moving Averages 101'
Glad you enjoyed it!
Perhaps the 200MA and a WEEKLY position action frequency would be better.
Great video, thanks
Very welcome
Just an amazing video !
Glad you think so!
Thank You
Thank you!
This is such good content I'm in awe..I had massive losses in 2020 this looks beautifully simple to understand.
Thanks 🙏
Thank you so much for your videos.
I think the next question I have is how you know which index mutual fund to pick. They have large cap , mid cap, small cap, and international fund. Do you apply the same strategy? How do we do the back test for different funds?
For example, one investor have this.
40% international fund
40% large cap fund
20% small cap fund
If one fund is below 200 day SMA, we exit and keep cash. The other is not below 200 day SMA, we keep. The portfolio is not diversified or balanced anymore. Is that going to affect the performance of the returns?
Just to point out that the S&P 500 is currently just under the 200 day EMA but not yet at the 250 day EMA. This could be a great time to test out the above strategy. Based on a fundamentally strong US economy, I propose, cautiously, to start buying SPY & VUSA.
great video sir
So nice of you
Thanks!
Welcome!
Newby here.If the trade we are interested in i.e. the S&P500 is already above the 200 DMA at the end of the month,is it reasonable to buy into it and then apply the monthly review as described in your first example? Many thanks.
From philippines here. Amazing channel!
Thanks! 😃
Bro, Could you please post the videos regarding volume action and volume profile!!.... I've already learned breakout and trend following strategy from your videos!...
Sure 👍
Thanks a lot for the analysis on different strategies. But could you kindly tell me what you mean by 'Cash only position' in the 50 & 200 crossover strategy?
No position, cash is in your bank.
Sir thank you 👍👃
Most welcome👍
Loved it
Thank you
I will backtest a strategy, that rotates into utilities, when SP500 is below 200DMA and rotates into 2xlev SP500 if it is above 200DMA. Also working with the monthly closes, but I might try out weekly closes as well. I think to beat the markets, it is better to act and react more slowly, cant beat the algos on speed anyway.
Thanks Tom. Sounds a solid plan
most valuable
bro
Thanks Parichit👍
Great content
Respect from India... 👏👏👏
Your videos are awesome.
Really helping me ...
Thanks for such a wonderful work.
My pleasure!
Thanks
No problem