Moving Averages

SIMPLE MOVING AVERAGE: Let's learn how to construct a Trading Model using moving averages.

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

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

Try This

Go Over to the Buy Model Editor Tab and View the buying criteria.

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

Notice in the editor how we have Plotted the "shorterMA" and "longerMA" to display them on the graph. The 12-day moving average is represented by the aqua line while the purple line represents the 26-day moving average.

Check out the Sell Model Editor.

The Editor says to Sell after "Not buyAfter." This means that whenever the buy model editor is false, we sell and invest in cash.

Now Try This

Hold the Mouse over the graph and scroll up to view a different time period.

Notice how the graph re-adjusts to start your portfolio at $100.

Now Try This

Switch over to the tab labeled Results Breakdown.

The Results Breakdown tab shows the performance of the trading model in each particular year.

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.

Zoom in to view performance on a monthly or daily basis.

 

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 things you have plotted.

All columns are sortable from high to low or low to high.

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.