Description
The Advance/Decline Cumulative Average strategy is based upon the eponymous technical indicator which calculates cumulative sum of the advance-decline value and compares it with its SMA. The Buy order is added when study's CumulAD plot is higher than the average; Sell order when it is lower.
Input Parameters
| Parameter | Description |
|---|---|
exchange
|
Defines the market providing the advance/decline data. |
length
|
The number of bars used in calculation of the SMA. |
Further Reading
1. "Low-Frequency Trading" by Ron McEwan. Technical Analysis of Stocks & Commodities, April 2013.
Backtesting is the evaluation of a particular trading strategy using historical data. Results presented are hypothetical, and there is no guarantee that the same strategy implemented today would produce similar results.
Technical analysis is not recommended as a sole means of investment research.
For educational purposes only. Not a recommendation of a specific security or investment strategy.