SIMPLE MOVING AVERAGE: Let’s learn how to construct a Trading Model using moving averages. Using the Explorer Tab, open the “Simple Moving Average” Trading Model.

This Trading Model buys whenever the 12-day moving average exceeds the 26-day moving average.

The Safe Harbor is $ (cash) meaning whenever we are not in GOOG we are in a 0% return account (Cash).

Try This

Go to the Buy Tab and view the buying criteria.

In the “Buy” Editor tab, we used the Average-Within Operator to create moving averages.

Notice in the editor how we have Plotted the “shorter moving average” and “longer moving average” to display them on the graph.

Now let’s check out the Sell Editor tab.

The Editor says to Sell after “Not buy After.” This means that whenever the buy model editor is false, we sell and invest in cash (our safe harbor).

Hold the Mouse over the graph and scroll up to view a different time period. Notice how the graph re-adjusts.

Now Try This

Switch to the tab at the bottom labeled “Results by Time”.

The “Results by Time” tab shows the performance of the trading model in each particular year (You can scroll directly on the graph to adjusts the dates by Year, month, and even day.)

In the Upper right-hand corner of the graph where it says, “show all days,” click on that, and select show “only bullish days,” which tells you performance only on days when the market went up.

Results table

Click on the Results Table tab at the bottom of the graph.

The results Table displays the values of your trading model, the security, and any other data you have plotted.

All columns are sortable from high to low or low to high, by clicking on the column title.

Export to Excel

Click on the Excel Export Icon in the upper right-hand corner of the graph.

In this box, you will name the file and specify its location on your computer.