Popular Rule Based Model (200/38) for Long Term Wealth and avoiding Bear Markets
This Trading System is “long only” to play because stock markets should going up in the long run. (long only) bias.
The Idea is to have the 200 day simple moving average and buy if the 38 day simple moving average is 3 % over the 200 day average and sell all when its cross 3 % under the 200 day moving average.
for lazy investors this is the weekly system. you have to check only on weekends the systems and place you bets on monday.
no stops, no money management. everytime all is investment long.
the advantge from the system is, you gain wealth long term with lower draw downs because you avoid the big bear markets with this simple system.
no optimization it needed.
when the sytem ist flat, you can invest in bond market, to profit more from bear market.
the system works stable with all big markets, for example
- DAX30
- MDAX (prefered)
- TecDAx (prefered)
- Nasdaq
- Dow Jones
- Nikkei
- SP500
- Stoxx 600
- MSCI World…
// Festlegen der Code-Parameter
DEFPARAM CumulateOrders = False // Kumulieren von Positionen deaktiviert
capital = 100000 + strategyprofit
n = capital / close
// orginial 200 day sma
c1 = average[40](close)
// the 3 % up band
c2 = c1*1.03
// the 3 % low band
c3 = c1*0.97
// the original 38 day sma
c4 = Average[8](close)
// Bedingungen zum Einstieg in Long-Positionen
IF c4 > c2 THEN
BUY n shares AT MARKET
ENDIF
// Bedingungen zum Ausstieg von Long-Positionen
IF c4 < c3 THEN
SELL AT MARKET
ENDIF
Comments
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Hello, Odin , thanks for this amazing strategy. One question , would it work for indexes cfd and not only for their stocks ?? Thanks for your time
Is it possible to make this indicator also suitable for dax30, s&p500, mdax50, and even for the continuous futuredata (xxxx), those do not work at this moment.
Very nice strategy, it does work indeed !! Very long time perspective. You can use this strategy to decide to sell or hold your stock index portfolio. Disadvantage is that it sells by opening next bar, which is opening next monday; Maybe it is possible to let this strategy trade, based upon the week end close value at the end of the week [close trade at close of the week]. KR Jan vd Wind
Quisiera saber si este modelo de cribador repinta. Saludos
Thankyou! It would be nice to have this as a screener.
Thanks...