Description
The EightMonthAvg strategy compares monthly price with its average of specified type and length. It adds a BUY_AUTO order at the last bar of the month if the average crosses below the price; SELL_AUTO order if it crosses above.
As was proposed by strategy's author Brooke Gardner, it should use an 8 month Simple Moving Average with monthly Close.
Input Parameters
| Parameter | Description |
|---|---|
price
|
The price used in calculation. |
length
|
The length of the moving average, in months. |
average type
|
The type of average used in calculations. |
Further Reading
1. "Trading High-Yield Bonds Using ETFs" by Brooke Gardner. Technical Analysis of Stocks & Commodities, June 2012.
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.