5 BEST Moving Average Strategies (That beat buy and hold)

5 BEST Moving Average Strategies (That beat buy and hold)

Steve Burns and Holly Burns take us through 5 of their best moving average strategies during a 16 year period, covering bull, bear and sideways moving stock markets.

We also add the 2020 pandemic crash period to see how the trading strategies performed.

The strategies include the 20,50,100,200 and 250 day moving averages, and moving average crossovers.

The book provides evidence to the question of can you beat a stock market buy and hold strategy.

Links:-

Stock Trading videos:-

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As a professional trader I have consumed hundreds of financial books and endured countless hours of self education. My hope is that this channel will reduce the learning curve duration of many aspiring traders by providing the key information in a concise and enjoyable manner.

[FinancialWisdom]

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[andrel.]

It's interesting that after trying so many indicators and reading so many price actions, I ultimately realized that the good old moving average was most useful.

[williamkz]

Hi Gareth. On review, the 200 day MA strategy only works for the pandemic crash because the dip occurred in late February 2020. If it had occurred in the first week of February 2020, the draw down would have been around 30-35% with the proposed strategy (at least by my calculations). My suggestion is that one never takes more than a 10% loss on SPY and gets out quickly at that point. Alternatively get out quick as soon as the price falls below the 200 day MA. It is always possible to buy back cheaply when the price goes back above the 200 day MA. Dealing costs for SPY are relatively low.

[James-]

Although my biggest winners have resulted from “buy and hold, ” I love the simplicity of moving averages strategies.

[laocooncapital]

my mind is blown that this is actrually effective....the more you learn the less you know

[FinancialWisdom]

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[EvanEvansE]

Perhaps the 200MA and a WEEKLY position action frequency would be better.

[harrisonjamie]

After a terrible 2022, shell-shocked financial backers have a lot to think about and losses to recover from. An expansion report and a wealth of other data did little to alter assumptions that the Central bank would likely keep raising interest rates regardless of whether the economy slows down. This implies that portfolios will experience more losses during the first quarter of 2023. I'm currently at a crossroads deciding whether to exchange my $250k security/stock portfolio; how might the continuous market volatility work to my advantage?

[mitsufisher]

Thanks again for another amazing video! I've watch most if not all of your videos. What's most helpful about your videos, in addition to the way you make things easy to understand, is the fact that they let you see and compare different strategies easily. What I find interesting about the different strategies is that they have many elements in common. Thanks again and keep up the good work.

[Raymondjohn]

Didn't Charlie Munger and Warren Buffett invent the strategy of buying/investing when the market is low and also buying/investing when the market is high? As Warren Buffet said, he has seen this happen many times in his life. Not an investor. My wife and i never earned more than a middle class salary. We plan to get retired at 58 with a stock portfolio worth $4M. We have never sold so much as one share of stock...

[noelmaskii]

As always a simple and to-the-point explanation, with perfect graphics to go with it! Thank you 🙏

[LifeCoachCarmen]

Wow - Love how you explain so simply and succinctly with the perfect amount of visuals! Thx for making it easy for everyone!

[pallavagt]

One of the best contents on trading. Thanks a lot for the contents.

[freddurst]

[regarding the 200D sma] Not sure if initial capital and the exact last day of month matter, but I tested w/ 10K i.c. and every 30 trading days as my time gap; did not even get close to what you are saying. return was %84 w/ max draw down of 9.6%, buy and hold was 164% return. If this tells me anything, either the last day of the calendar month has some significance or shifting the days has a dramatic affect on this strategy. It's hard to believe the former.

[johngault]

I did a back test of these strategies on my own to see if you were accurate. It seems to be accurate but something very interesting happens when you do the calculation from 1/1/2000 to 8/7/2024. The buy and hold kicks all those other methods butt by a long shot.

[mudassar]

<< 8:00 Summary of MA Strategies >>

200 Moving Average
On 200 MA, use daily stock prices.
Signal should only be acted once at the end of the month.
At the end of the month if the price closes above the 200 MA, take a Long Position. And, at the end of the month if the price closes below the 200 MA, exit the position and stay in cash.

[DoctorSe]

May God bless you with even more abundance and success brother! This is an amazing very well done book summary 👌

[tom-eliasknosp]

I will backtest a strategy, that rotates into utilities, when SP500 is below 200DMA and rotates into 2xlev SP500 if it is above 200DMA. Also working with the monthly closes, but I might try out weekly closes as well. I think to beat the markets, it is better to act and react more slowly, cant beat the algos on speed anyway.

[Laithspam]

Only problem I have with this analysis is the years used to back test which was an extremely bullish period with easy monetary policy which we will likely not see again for awhile

[TheKiyoshi]

I wasn't sure which one to use, now this has convinced me.