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

[@FinancialWisdom]

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[@susannnico]

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[@lailaalfaddil7389]

What kind of investment would you advise? And what is the best way to follow it?

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[@harrisonjamie794]

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?

[@MarcusFred-wn3iv]

Concentrate on two main objectives. First and foremost, keep yourself safe by knowing when to sell stocks to reduce losses and maximize gains. Second, prepare yourself to gain from a market turnaround. I advise you to seek the advice of a representative or financial counselor

[@harrisonjamie794]

@@MarcusFred-wn3iv In fact, ever since Coronavirus, I've been in regular communication with financial examiners. Nowadays, buying moving stocks is quite easy; the trick is knowing when to buy and when to sell. The section and leave orders for my portfolio are made by my counsel. accumulated more than $550,000 from a $150,000 savings that was initially stale.

[@MarcusFred-wn3iv]

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[@harrisonjamie794]

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[@MarcusFred-wn3iv]

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[@Raymondjohn2]

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...

[@bob.weaver72]

It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing....

[@martingiavarini]

i've been doing this same thing myself. Can't get into trouble with the IRS when I have no income and all my money is in stocks. I don't like doing the work though. Lol. So I just invest through an advisor who does the stock picking. My money grows, and I'm tax-free...

[@hermanramos7092]

@@martingiavarini Do you mind sharing info on the adviser who assisted you? been saving for pension since age 18 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively, there are a few cars I still wish to drive, a few mega holidays, etc

[@martingiavarini]

@@hermanramos7092 Have you heard of‘’Catherine Morrison Evans’’ ? She gets featured regularly on CNBC. I myself use tax-deferred accounts to hold my investments. That way I avoid capital gains taxes. There are other options your advisor could brief you about....

[@hermanramos7092]

@@martingiavarini Thank you. I just checked her out now and I've sent an email. I hope she gets back to me soon. I've been thinking of doing this for a long time now, and I've procrastinated enough already.

[@andrel.2768]

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.

[@messed5859]

Yeah same here, I guess it was the sense of longing, hoping to find something that really gives you the best probability out if everything. And the idea that the more unique or complicated an indicator was, meant that it was better or slightly more effective than anything else.

[@vetiarvind]

i use some others too but i realize that the MA's are all you need. it's like, when you're a noob, you avoid the fight. when you're a beginner, you look for fights. when you're a master fighter, you avoid the fight too.

[@KavishJhaveri12]

Don't you guys think it gives delayed signals 🤔

[@messed5859]

@@KavishJhaveri12 the signals only get bad when there are extremely bad impulse moves but at that point you'd recognize the big moves and well, personally I avoid those moments.

[@YouLoveMrFriendly]

Filters (RSI, Stochastic, etc) only are used to provide comfort to the trader. Good traders do what is uncomfortable.

[@maverickjones9418]

I use 6, 13, and 30. Enter 50% position at the 6/13 cross and 100% position at the 13/30 cross. Then exit 100% of position when the 6/13 cross again. I also trade 5% of account equity when shorting above 200 dma and buying below. Then use 10% of account equity when shorting below 200 dma and buying above 200 dma.

[@ungket5846]

Thanks you give me inspiration. I will backtest this strategy

[@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.

[@FinancialWisdom]

Thanks William, yes you are right, an element of timing luck here...

[@gomesdiogo]

You are right indeed, a solution to that might be a simple rule of two days of closings below 200MA before seeling pos or two days of closing above to go long, wonder what would it do to the results

[@obcane3072]

Another option is to use daily but with a 2-4% latch. You wait for it to drop lower than 2-4% of the DMA to get out and the inverse to get in. It minimizes whipsaw. Or waiting on the weekly. I think I've read somewhere that the 125 DMA offers the best Sharpe & Sortino Ratio.

[@VinDub18]

I would probably use the 200DMA strategy with a trailing stop loss of 15-20% as shown in an other video to prevent bigger loss in case of crash. Would that make sense? Im studying for a job where i'll be working 1 month in- 1 month off and I'm looking for a strategy i could use while away for the month. The 200 DMA would be pretty easy to implement.

[@williamkz]

@@VinDub18 That's probably a good strategy. If you're trading an index, like SPX, you can probably afford a 10-15% stop loss (currently 400-600 points) if you're primarily a buy and hold investor. I personally think 20% is too much. (Short term traders tend to use stops below 5% for the SPX.) For buying back, which is always the tricky bit, I think you might be better off using the exponential moving average and buying when the 5 day or 10 day EMA crosses above the 200 day EMA. The 10 day gives slightly better confirmation than the 5 day, but risks buying back at a slightly higher price. This is just my own opinion and not advice. Good luck.

[@322dawgg]

Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680k savings vanish after putting in so much effort to accumulate them.

[@loud9090]

Well the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals

[@Marthas-r4c]

Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.

[@322dawgg]

I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

[@Marthas-r4c]

My consultant is Nicole Desiree Simon She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.

[@322dawgg]

I just checked her up online, and I must admit that she has an extremely outstanding experience in investment. Thanks for sharing. I'm going to send her an email right away

[@devereauxjnr]

Insightful video. I just want to know best how people split their pay, how much of it goes into savings, spendings or investments. I'm 27, and earn nothing less $150k per year, but nothing to show for it yet.

[@loud9090]

When people have money, they spend it. And some people spend more money when they have more of it. If you want to improve your financial management, you should consult with a financial advisor.

[@user-3456rtu]

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[@322dawgg]

@@user-3456rtu Nice, who is the Financial Advisor aiding you if this is not much i'm asking? my retirement plans are going down the drain with my 401k particularly losing everything it gained ever since 2021.

[@322dawgg]

@@user-3456rtu I looked up NICOLE online using her fullname and researched her accreditation. She seem very proficient, I wrote her detailing my Financial market current position, goals and scheduled an appointment. Thanks

[@3702251a]

Speaking from experience. I am you now at 50 yr old. I pushed myself in the right direction but a little late. You still have time. 1) if you do, stop drinking alcohol. PERIOD. Not even glass of wine blah blah.. 2)stop smoking cigarettes/vaping if you do 3) Stop Drinking Coffee 4) stop ALL sugar consumption / Junk food / fast food 5) stop consuming meat! 6) *** EXECUTE 1-5 All at Once *** 1-5 are things I have done in life which has had a very poor Risk/Reward ratio. There is no Longterm Reward for any of those habits (risk) And watch your life change and watch the money you save$ go through the roof. When your mind and your life is clear of distraction/issues you’ll see clearly what you should do to get to the life you want. Keep in Mind that 1-5 are the most marketed habits on tv. Best wish!

[@johngault200]

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.

[@FinancialWisdom]

It would do, because you can only start the study from the point of the moving average cross

[@EvanEvansE3]

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

[@James-100]

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

[@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

[@freddurst4420]

[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.

[@Ramschat]

I just today backtested it in Python and I also found that it significantly underperforms buy and hold. Over the period 3-1-1928 until 22-12-2023, buy and hold: 267.7 times initial investment, 200-day MA strategy: 188 times initial investment. The gap is too large to be attributed to the randomnes of 'what day of the month you make the decision each month'. A robust strategy wouldn't be dependant on such an arbitrary decision. I also tested it for the NASDAQ, with disappointing results again.

[@J-D248]

@@Ramschat I found the same results.. The drawdown is reduced, but it does not out perform.

[@tom-eliasknosp5267]

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.

[@FinancialWisdom]

Thanks Tom. Sounds a solid plan

[@samsum13]

Thank you so much for your videos. I think the next question I have is how you know which index mutual fund to pick. They have large cap , mid cap, small cap, and international fund. Do you apply the same strategy? How do we do the back test for different funds? For example, one investor have this. 40% international fund 40% large cap fund 20% small cap fund If one fund is below 200 day SMA, we exit and keep cash. The other is not below 200 day SMA, we keep. The portfolio is not diversified or balanced anymore. Is that going to affect the performance of the returns?

[@thelivinglazer]

Has anyone backtested Steve Burns 200MA strategy and gotten the same results? I tested this on a community script in TradingView and then on my own manually using Yahoo price data and the 200MA strategy was roughly the same as buy and hold. It did not come close to 300%… anyone else try this on their own?

[@Fzp450]

I did the DMA 250 backtest from 1994 to 2022 and couldn't replicate the same results he showed in the book. I also got something similar to 300% but the buy and hold was 900%. I think he either cherry picked the trades because there are streaking losses when the price cross above and below quickly or he didn't correctly backtest the strategy.

[@Jerry327565]

Great video, but why were the buy and hold results different for each test? Since it’s the same comparative strategy for each test, I would expect the buy and hold returns to be the same each time.

[@FinancialWisdom]

Because it would be unfair if the had different starting points, i,e buy and hold could only be measured from the first entry point of the Moving Average being measured

[@zailsinh]

I think the only reason the drawdown of the 200ma was less than other strategies and in range of the 250ma during the pandemic because the fall was very swift and coincidentally must have happened during end of Feb.. Because during a swift fall if we wait for end of month to react... It would be too late

[@FinancialWisdom]

Well spotted Zailsinh, my observation also...👍

[@zailsinh]

Thanks a lot for the video... I take trades in fundamentally strong stocks... Ones with good profitability, RoCE and RoE and then combine it with technicals like moving average cross overs especially 20ema crossing 200ema... And the journey till now has been quite rewarding..could instantly relate to your video... Can back it with practical experience 👍👍👍

[@FinancialWisdom]

@@zailsinh Great stuff... Your method of combining technical and fundamentals is a great philosophy...

[@williamkz]

Just to point out that the S&P 500 is currently just under the 200 day EMA but not yet at the 250 day EMA. This could be a great time to test out the above strategy. Based on a fundamentally strong US economy, I propose, cautiously, to start buying SPY & VUSA.

[@_d0ser]

Worth noting is that if you are selling out under any of these systems, you still get a return by getting interest on your cash while you wait to buy back in.

[@LawStudent0071]

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

[@FinancialWisdom]

Thanks Aymen, same to you... Much appreciated

[@arod3295]

@@FinancialWisdom is the 200 day MA used, in the experiment on historical data, a simple MA or exponential MA?

[@giantessmaria]

Thanks for the great explanations and insight! I'd also add; adding to your long positions on those nasty drawdowns is icing on the cake. The whole point of staying in the market through those gut wrenching draw downs, is to be able to get more of your stock at a discounted price, thus making those next new market highs that much sweeter!

[@mattlm64]

16 years with two major and slow drawdowns is not a good data sample.

[@laocooncapital5238]

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

[@ChandranshuDas]

Thanks for sharing. What are the annual returns for each year from. 2000 to 2016? With starting point of 2000, the comparison is inherently biased against buy and hold. It should be compared across different time frames and starting points in addition to looking at annual returns.

[@mitsufisher9979]

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.

[@FinancialWisdom]

Thanks Mitsu - Really means a lot🙏👍

[@momergil]

The problem with such strategies of "doing swing/position trade instead of B&H" is taxes. Normally B&H is used for investments when the person will be putting a large amount of money, each month a little bigger, hoping for it to increase over time and pay for a better future. Once you do trading instead, selling what you previously bought, you start to have losses of your total amount which may as well destroy any advantage the strategy was giving you over B&H. So my suggestion is this: if you're gonna try to beat B&H, use some alternative strategy that doesn't involve selling, only buying. And here is the good news: there are strategies like this that beat B&H :)

[@FinancialWisdom]

You need to factor selling into a strategy, holding losing positions can be very detrimental

[@Sam-tg4ii]

If you add the possiblity of shorting to these strategies, their performance significantly increases beause trend following works enve better in downfalls.

[@noelmaskii25]

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

[@FinancialWisdom]

Glad you liked it!

[@rolandholtgen8181]

317% return in 16 years results in 7.5% p.a. and it is an optimization - means very likely you will not see the same level of outperformance again. but you were engaged only ~60% of the time in the market. This means in 40% of the time you where not exposed to the risk and could invest somewhere else and hopefullý generating addidional returns

[@intercrew99]

why does the buy and hold percentage gain from 2000-2016 vary between different strategies. Shouldn't buy and hold be the same across all strategy comparisons? 200 DMA is 125.2% 250 DMA is 127.4% 50x200 is 167% 20x200 is 161% 50x100 is 104%

[@FinancialWisdom]

No becuase the moving averages start at varying points. It would be an incorrect comparison otherwise

[@mollythedog6742]

I tried this against the ishares MSCI ACWI ETF - world shares index - manually from 2010 to 2021(nearly) return was 63%, less than S&P buy and hold, obviously expect less than S&P, but perhaps this strategy is time limited due to the FANNG stocks & Tesla now; and perhaps in future the S&P return will come from China or Africa : Conclusion - all systems may become time expired, S&P the best index to track but can one place all eggs in one basket?

[@LifeCoachCarmen]

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

[@ericd9947]

I find it very interesting that these strategies only utilize going long and not going short when the MAs are not favorable.

[@FinancialWisdom]

The markets generally have a long bias, look at the S&P500 over 10, 20 years

[@YasharFrank]

Thanks!

[@FinancialWisdom]

Welcome!

[@uiliumpowell4684]

Isn't what kind of taxes buy and hold pays in comparison to a buy and sell strategy an important factor?

[@here2learn]

In a taxable brokerage account? Probably. But...what if you decide on employing these strategies in an account that isn't taxable like a 401k/IRA/HSA?

[@FinancialWisdom]

correct - there is also spreadbetting for tax free too. (UK)

[@here2learn]

@@FinancialWisdom lucky! (Filthy colonial)

[@Ivan101]

@@here2learn How can you go all cash in a 401k plan?

[@here2learn]

@@Ivan101 usually you'll have a money market option

[@frankyanwang]

Excellent Video! How about MACD compare to 200 day MA? What about 150 day vs 200 day MA? IF you have back testing data, would appreciated!

[@FinancialWisdom]

Hi Frank I dont have the data sorry, could be worthwhile though...

[@markbaier4421]

When you state DMA, is that the same as SMA?

[@robampuero7424]

I dont really understand why de "buy and hold" strategy for the same time period (2000-2016) has different returns in each moving average comparation: 125% in the first stratetgy, 127% in the second strategy, 167% in the third strategy. I suppose you are measuring the buy and hold from the trigger of the first entry signal?? is that true? I would consider more appropiate to give the buy and hold strategy from the 1st january of 2000

[@Tepalus]

Not realy useful if you consider the underlying asset itself was in an uptrend over the past 16 years. Try it with other indices, forex, individual stocks, etc. 16*12 (for the first) equals to max. 192 trades. That's too small of a number for proper backtesting...

[@FinancialWisdom]

Not sure I agree, the underlying asset has an upward bias, always has, so why would you apply the strategy in any other way?

[@davidibiyemi1308]

Fantabulous, thank you very much Sir for this enlightenment

[@joeygarza9550]

Wow, I wasn't sure Holly & Steve were widely known! I found most of their Stolly Media output informative, especially their classic 'Moving Averages 101'

[@FinancialWisdom]

Glad you enjoyed it!

[@notbusy5006]

Man! I can’t thank you enough for this videos, you’re really enlightening us.

[@FinancialWisdom]

Glad to hear it!🙏👍

[@ehtashamamir7041]

excellent. i use 10 and 20 EMA frequently

[@jamesstephen1516]

Namaste brother, Amazing effort on all videos n presentation. Thank you

[@FinancialWisdom]

You're most welcome👍

[@kevintalbot632]

I would love to hear your thoughts on the 13 and 48 MA swing strategy and if it is as good as the Yahoo post, (yes its old)

[@MrSchobilo]

Awesome content 👍🏼

[@FinancialWisdom]

Thank you 🙌

[@thomasflynn8712]

I never understood this but it’s starting to make sense

[@jayparmar7859]

You have made me learn so many things about the market, I cannot even put into words. You are the best channel I have ever subscribed to. My sincere gratitude towards your hard work and helping us reach new heights. Be blessed.

[@FinancialWisdom]

Wow, thank you Jay! really means the world to me that i'm able to make a difference, thanks🙏👍

[@bharath8721]

Nice video!.....Thank you!....It effectively works on index only....If we apply it on individual stocks and waiting of one month to confirm 200MA then the drawdown will be more I think!!!

[@FinancialWisdom]

Yes, correct

[@yasincbuk3710]

I have some doubts about the results. For example: On 2000-01-03, SP500 Close is 1,455.2 and on 2016-12-30 the close price of SP500 is 2,238.83. With simple math the buy and hold return is ((2,238.83-1,455.2)/1,455.2)*100 = 53.85%. I have also tested all above strategies for time interval 03.01.2000-30.12.2016 my results are completely different. My results: Buy and Hold Return : 53.85% 200 DMA end of month Crossover : 144% return with max drawdown of 17.79% 250 DMA -Price Crossover : 85% return with max drawdown of 20.23% 50 & 200 DMA Crossover : 145 % return with max drawdown of 19.65% 20 & 200 DMA Crossover : 127 % return with max drawdown of 17.21% 50 & 100 DMA Crossover : 90 % return with max drawdown of 20.23%

[@nixblick1221]

At 2:54 he says "total gain" - so the dividends are included in his calculations.

[@davidwolf8461]

Can we combine a moving strategies + a stop loss ?

[@FinancialWisdom]

Absolutely

[@pranjayarora8115]

If I sold when price cross below moving average & next day price open gapup ( I MISS GAP UP

[@FinancialWisdom]

Any eventuality is possible, its all about probabilities. Some you win some you lose.

[@zilchde3554]

How are there different Buy and Hold performances for the S&P for the same timeframe possible?

[@FinancialWisdom]

They start at different points depending on when the MA was triggered

[@mergodon]

It begs the question why the hell do I want to put my money into a managed fund, if I can beat the market using a strategy what I have to manage only once per a month? There is another video about the funds here, which shows only a few of them are actually beating the market, instead of focusing on the selection process it is easier to use a simple strategy like this.

[@jamescastle-mason8063]

This is such good content I'm in awe..I had massive losses in 2020 this looks beautifully simple to understand.

[@FinancialWisdom]

Thanks 🙏

[@AlessandroBottoni]

Yet another excellent video that every investor should watch. Thanks.

[@FinancialWisdom]

Much appreciated!

[@manishvyas0702]

Dear Sir, Can you please guide or prepare video on only 50 Day Sma (price crossover sma) and aldo SMA 200, Please

[@normchartier]

Thanks for the educational video. I thought that the most interesting part was the illustration of how much of a drawdown the various death cross scenarios would have caused. I would have liked to have seen you illustrate how much of the recovery the various golden cross points would have missed as well.

[@FinancialWisdom]

Fair point, yes there is usually a compromise...

[@Stick2011]

Has anyone looked at after-tax returns if money is held in a non-qualifed account? Buy and hold would possibly have an advantage in that scenario

[@TheKiyoshi04]

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

[@FinancialWisdom]

Good to hear👍

[@tkdhanesh01]

KIS - Keep it simple. You don need the fancy things to make money. I have been using this same strategi for 3 years in ETFs and it works!!!

[@FinancialWisdom]

Well said!

[@jean-marcducommun8185]

Like this kind of videos a lot because it let's you assess objectively what works and the advantages and disadvantages they have. When it comes to timing the market we all know that it's highly difficult as the market changes its characteristics over time (just compare SPY with RSP, same stocks different weighting). Refining the timing rules tends to move things from black and white towards withe, light grey, grey, dark grey ... you know what I mean. Essentially I looking for a trend signal which is based on moving average crossover that filters out a good deal of noise and combine it with an emergency rule like percent down since high or for a week. I believe with this two way timing criteria one can reach the optimum level. There is no perfect timing tool like there is no holy grail. Would be nice to see a back test ...

[@spsod]

I did my own backtest of the strategy where you wait for the end of the month and use the 200 MA to decide whether buy, hold or stay in cash. It dit not perform the same way, am I doing something wrong?

[@mattlm64]

I think the data in the video is cherry picked. It is sensitive to what day of the month you choose. I would want to see much longer backtests at different timing offsets and for other markets too.

[@riccardoronco627]

Consider to trade using the DIRECTION of the 200-day ma rather than the crossover...

[@FinancialWisdom]

Thanks

[@donniereidjr]

I loved this book. Thanks for breaking it down even more than my understanding.

[@FinancialWisdom]

You're so welcome!

[@auliazhraaa9]

thanks for sharing, I'm a beginner who joined the nfc community.

[@hoomanstavanger]

Amazing content, with great presentation and clear explanations. Much appreciated, keep up the great work!

[@FinancialWisdom]

Much appreciated!🙏👍

[@ngoctang3142]

Your videos is the best of the best. I appreciate all your videos.

[@FinancialWisdom]

Thanks!

[@dependra7]

You are simply awesome! This is the the best financial education channel out there, period

[@FinancialWisdom]

Wow, thank you!

[@williamkz]

A really useful piece of backtesting. Thanks.

[@FinancialWisdom]

You're very welcome!

[@robampuero7424]

And sorry but i dont understand the sp500 returns you are describing: in january 2000, the SPY was at 122,6 USD. At december 2016, SPY was at 199,7. That is a GAIN of (199,7-122,6)/122,6 = 62%. I dont get how you compute a range of returns of the SP500 buy and hold strategy from 104% to 167% (data from the final table)

[@bjacob5451]

Thanks a lot for the analysis on different strategies. But could you kindly tell me what you mean by 'Cash only position' in the 50 & 200 crossover strategy?

[@FinancialWisdom]

No position, cash is in your bank.

[@thepinoyboomer]

I am a bit confused. Why should you buy when the closing price is above the moving average and then sell when closing price is below the moving average, in relation to 200 MA? In the video it seems to be showing you are selling at a loss from the time you bought the share above the MA price. Shouldn't we buy when it is below the MA price then sell when it is above it and then buy again when it is below it.

[@michaelsteinman1314]

The 200 DMA seems to have gotten lucky in 2020 since the crash started at the end of a month.

[@FinancialWisdom]

very true

[@crashtheimf]

love videos with statistical metrics

[@FinancialWisdom]

Thanks Tim, yes i do try, it makes them more informative i think...👍

[@successhighway]

Superb. I have been trading for more than a decade. Read everything under the sun. Your videos are too too good. 👍

[@FinancialWisdom]

Great 👍Thanks Successhighway🙏

[@darkhelmet12e47]

With a system like this, I imagine a leveraged etf like UPRO or TQQQ would be far better regardless of market conditions.

[@Draim9847]

Is there data on this before 2000? Would you get similar results (better than buy & hold) from lets say 1984-2000?

[@FinancialWisdom]

Hi Edward, without back testing I would not know, but the principle is sound.

[@SlobberySlob]

Backtested. Buy and hold miles better. The index went from 160 to 1281 (8 fold). It missed the 1987 crash in absolute terms. Unfortunately it always loses a few % before the uptrends and in choppyness, and got in at highs and out at lows twice in 1991 (-11%) and 1994 (-4%) - when compounding this matters. On backtesting it got 350% vs 669% gain Buy and hold 1/1/84 to 1/12/99

[@nigeljamalbrink]

Love the videos, such clean and to the point information. What's the easiest way to find these trades though? Prior to the Ma's crossing lines? Take you need to put it in a scanner but have no idea what to enter

[@shaneconway1993]

For the 200 DMA approach - if you sell 100% of the stake you have built over prior months because the price is below 200 DMA (say £100 x 10 months = £1000) , do you then buy back in with 100% of your stake (£1000) when the price goes above the 200 DMA or do you start again with your smaller monthly payments (£100)?

[@johnbelarmino2642]

Been waiting for ages XD, Love ur content bru

[@FinancialWisdom]

Glad you enjoy it!🙏

[@balazslakatos9817]

the problem here that you dont calculate the trading fees into the equation. for example my broker charges 0.4% for each trade (I know, insanely expensive). during a volatile period you could realize loss because of the frequent trading, even if the market goes up overall.

[@allakhani309]

Great Presentation. Thanks for "clarifying the wisdom".

[@FinancialWisdom]

Glad you enjoyed it!

[@curtkusel6278]

Great perspective on the handling of different ma's. However, can you discuss how these or others can be used to swing trade, holding for a few days to weeks?

[@pallavagt]

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

[@FinancialWisdom]

Glad you think so!🙏👍

[@ugochukwuonweluzo1584]

Can this be used for other stocks or is it only S&P 500? I am new to this, but using one of your videos of stop loss placements has really helped. W

[@FinancialWisdom]

Hi Ugochukwu, without backtesting specifically I would assume the concept is suitable for all diversified indexes and ETF's👍

[@damondeluca]

Thank you for all the amazing videos! A real gold mine of info. Priceless.

[@Amitkumar-gh7wc]

Your content is very helpful and informative. I learned every time more and more by watching your channel, Keep uploading, please

[@FinancialWisdom]

Good to know thanks

[@paulsietereales9412]

From philippines here. Amazing channel!

[@FinancialWisdom]

Thanks! 😃

[@CaptBeefCake]

thanks

[@FinancialWisdom]

Welcome

[@Semsdoyle]

Great video! Thank you for explaining these strategies, I always wondered about their significance.

[@FinancialWisdom]

Thanks for watching...

[@bharath8721]

Bro, Could you please post the videos regarding volume action and volume profile!!.... I've already learned breakout and trend following strategy from your videos!...

[@FinancialWisdom]

Sure 👍

[@user-tz6px9lq9f]

Great videos. Probably asked before, but what would happen to the returns if you short SPY at the cash crossover? I would love to see a video on that comparing these strategies. If you want to ignore dividends, i suppose the spx would be just as effective as a proxy. Furthermore, for a buy/short approach it would be best for an investor to avoid negative dividends and just focus on the asset value.

[@user-mv8dk9be9i]

Simple method for everybody who wants to start trading

[@OrenLikes]

How is the Buy-and-Hold return are returns and different?!?!? (2000-2016)

[@FinancialWisdom]

They start at different points depending on when the MA strategy started

[@OrenLikes]

@@FinancialWisdom So, buy and hold didn't start at 1/1/2000 but when the first MA strategy got into position?

[@DS-gn5vu]

Thank you very much you gained a new subscriber.

[@FinancialWisdom]

Awesome, thank you!

[@selftrue670]

Why does the buy and hold comparative return vary across strategies? Shouldn't it be the exact same?

[@FinancialWisdom]

They start at different points, when the strategy starts

[@titusrider7948]

Great content ! Love your animations, very whimsical 😊