Are Moving Averages Good Or Bad As Trading Strategies? We Backtest All Variants Of MA´s (Quantified Strategies)

Moving average strategies in trading are widely discussed and used in the media and likewise frequently used by analysts when making calls about the future. What is a moving average and can we find profitable moving average strategies on stocks? Backtests reveal that moving averages work best for short-term mean reversion and long-term trend-following. However,…

Exponential Moving Average – Trading Strategy Backtest (Does it work?)

Exponential moving average strategy backtest There are different kinds of moving average indicators, and the exponential moving average is one of the most commonly used among traders. But do you know what it is? And do you know if an exponential average strategy can be used profitably in the stock market? Yes, exponential moving average…

Hull Moving Average – Trading Strategy Backtest (Does it work?)

Hull moving average strategy backtest Experienced traders know that the best trading indicators are those that can reduce lag, eliminate noise, and quickly respond to sustained market changes. The Hull Moving Average (HMA) seems to tick those boxes. What do you know about the indicator? Is it possible to find profitable Hull moving average strategies?…

Linear-Weighted Moving Average – Trading Strategy Backtest (Does it work?)

Linear-weighted moving average strategy backtest Moving averages are a technical analysis tool that smooths price data over a specific period. They come in different types, and each type has its advantages and limitations. The linear-weighted moving average is one of the common ones. But do you know what it is? And do you know if…

Simple Moving Average – Trading Strategy Backtest (Does It Work?)

Simple moving average strategy backtest Moving averages are one of the most commonly used indicators in technical analysis, and the simple moving average is the easiest one to construct. Do you know what it is? Can you make profitable simple moving average strategies in the markets? Yes, simple moving average strategies do work. Our backtests…

Adaptive Moving Average – Trading Strategy Backtest (Does it work?)

Adaptive moving average strategy backtest (Kaufman’s adaptive moving average) We know that traditional moving averages smoothen price series to reduce noise and show the trend. However, when price makes a temporary but significant leap, it can still give the appearance of a false trend. This is why Perry J. Kaufman invented the adaptive moving average….

Smoothed Moving Average (Wilder’s) – Trading Strategy Backtest (Does it work?)

Smoothed moving average (Wilder’s) strategy backtest The smoothed moving average is not as common as other moving average indicators, but you will come across it in your trading journey. So, it’s good to know what it means. Can a smoother moving average be used profitably in the stock market? Yes, smoothed moving average strategies do…

Variable Moving Average – Trading Strategy Backtest (Does it work?)

Variable moving average strategy backtest Traders have always looked for ways to improve the performance of exponential moving average, and using a volatility index (VI) to adjust the smoothing period as market conditions change has given rise to the variable moving average. But do you know what it is? And do you know if a…

Weighted Moving Average – Trading Strategy Backtest (Does it work?)

Weighted moving average strategy backtest Some simply call it weighted moving average, while others call it linearly weighted moving average. They are referring to the same indicator, which is one of the most popular and widely used MA indicators on most trading platforms. But what is it? And do you know if a weighted moving…

Zero lag exponential moving average – Trading Strategy Backtest (Does it work?)

Zero-lag exponential moving average strategy backtest The moving average is no doubt one of the most widely used technical indicators. While there are different traditional types, many variations are being created all the time to improve on the old versions. The zero-lag exponential moving average is one of the improved versions of the exponential moving…

Volume Weighted Average Price – Trading Strategy Backtest (Does it work?)

Volume-weighted average price strategy backtest Several indicators are used for technical analysis; some of these indicators combine different market data to tell a better story about what the market is doing. The volume-weighted average price (VWAP), which combines both volume and price data, is one such indicator. But what is it? Can we make profitable…

Triple Exponential Moving Average TEMA – Trading Strategy Backtest (Does it work?)

Triple exponential moving average strategy  One of the not-so-common moving average indicators used by traders is the triple exponential moving average (TEMA). It is an important trend indicator used by traders to identify trends more closely than a traditional moving average. But do you know what it is? And do you know if a triple…

Variable Index Dynamic Average – Trading Strategy Backtest (Does it work?)

Variable Index Dynamic Average strategy backtest Over the years, chartists have developed indicators to help them analyze the market better. While there are many of these indicators, a few stand out for their usefulness. One of such is the Variable Index Dynamic Average. Do you know what it is? Can we make profitable Variable Index…

Triangular Moving Average – Trading Strategy Backtest (Does It Work?)

Triangular moving average strategy backtest Moving averages are the most common and useful technical indicators in forex trading, owing to their effect in smoothening out price movements and showing the actual direction of the trend. There are various types of moving averages. Apart from the common ones you know, such as the Simple Moving Average…

Guppy Multiple Moving Average – Trading Strategy Backtest (Does it work?)

Guppy multiple moving average strategy backtest Trend traders are always looking for trading opportunities by analyzing the price chart. This includes spotting a trend early as well as knowing when a reversal is about to occur. Interestingly, the Guppy Multiple Moving Average can be helpful in that aspect. But do you know what the Guppy…

McGinley Dynamic – Trading Strategy Backtest (Does it work?)

McGinley Dynamic Indicator strategy backtest Different types of moving averages are used in technical analysis. However, the McGinley Dynamic indicator stands out for its attempt to solve a problem inherent in moving averages that use fixed time lengths. It’s a type of moving average that is designed to improve existing moving averages. But do you…

Geometric Moving Average GMA – Trading Strategy Backtest (Does it work?)

Geometric moving average strategy backtest There are different ways of getting the moving average of a time series. While the simple and exponential methods of calculating the moving average are more common in the trading world, it is also possible to get the geometric mean of the price series. But what does the geometric moving…

Fractal Adaptive Moving Average FRAMA – Trading Strategy Backtest (Does it work?)

Fractal adaptive moving average strategy backtest Many new forms of moving averages have been created, but not all of them are easy to calculate. The fractal adaptive moving average is one of those unique moving averages, but it offers great prospects. Let’s take a look to find out what it is. Can we make profitable…

Fibonacci Moving Averages – Trading Strategy Backtest (Does it work?)

Moving averages are one of the most useful technical indicators. This is because they are simple and flexible while offering useful information about the trend, as well as support and resistance zones. There are many types of moving average indicators, but in this post, we will be looking at the Fibonacci moving average. What it…

Double Exponential Moving Average – Trading Strategy Backtest (Does it work?)

Double exponential moving average strategy backtest Traders are always looking for an edge in the market. While some employ the use of chart patterns, others simply trade based on indicators. An example of such an indicator is the double exponential moving average (DEMA). But do you know what it is? And is it possible to…