This famous moving average strategy is very easy to follow to decide when to buy (go long) and when to take profit.
The strategy goes long when the faster SMA 50 (the simple moving average of the last 50 bars) crosses above the slower SMA 200. Orders are closed when the SMA 50 crosses below the SMA 200. This simple strategy does not have any other stop loss or take profit money management logic. The strategy does not short and goes long only!
On the S&P 500 index (symbol "SPX") this strategy worked on the daily chart 81% since price data is available since 1982. And on the DOW Jones Industrial Average (symbol "DOWI") this strategy worked on the daily chart 55% since price data is available since 1916. The low number of trades is in both cases not statistically significant though.
All trading involves high risk; past performance is not necessarily indicative of future results. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
This script worked well, but it appears Tradingview has changed their Pinescript code language. Now this script does not work anymore without making the code title much shorter:
change line 2:
strategy("Golden Cross, SMA 200 Long Only, Moving Average Strategy (by ChartArt)", shorttitle="CA_-_Golden_Cross_Strat", overlay=true)
Do you know how to add stop loss?
if it goes below the price we enter -> EnterPrice - 100 or in case of shorting it -> EnterPrice + 100
Thank you for your awesome script
bimakuru
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what does "long +1" mean?
Kings77
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I am new to this platform. I really liked your strategy and very helpful for swing trades. I would like to request you if you could add date inputs for backtest such as start date and end date to perform backtest to this strategy would be really helpful. I would really appreciate if you could add or let me know code to add dates inputs which would work with this existing strategy codes. This will be very helpful for others as well if we add this additional feature. Looking forward to hear from you soon. Thanks