Simple Moving Average (SMA) is one of the oldest and simplest measurements of trend. Arrived at by taking the average of prices over a period of time, it remains a popular tool for timing investments and risk-management. The following series of posts outlines how investors can use SMAs to get superior risk-adjusted returns.<\/p>\n\n\n\n
SMA strategies that use ETFs to create trend-following portfolios.<\/p>\n\n\n\n
Shallower drawdowns allow a bit of leverage to be employed. This could be a good starting point for a NIFTY futures trading strategy.<\/p>\n\n\n\n
A lagged response will result in higher drawdowns. It could, however, lead to lower transaction costs by papering over short-term mean-reverting moves. <\/p>\n\n\n\n
Transaction cost analysis to backtests give investors an idea of what gross and net returns of different SMA look-backs look like over buy and hold. <\/p>\n\n\n\n
Strategy outcomes depend on the underlying index and holding-periods. There is, alas, no magic formula.<\/p>\n","protected":false},"excerpt":{"rendered":"
Simple Moving Average (SMA) is one of the oldest and simplest measurements of trend. Arrived at by taking the average of prices over a period of time, it remains a popular tool for timing investments and risk-management. The following series of posts outlines how investors can use SMAs to get superior risk-adjusted returns. SMA Strategies … <\/p>\n","protected":false},"author":2,"featured_media":2091073,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3933],"tags":[],"class_list":["post-2124393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-collections","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2124393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=2124393"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2124393\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/2091073"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=2124393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=2124393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=2124393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}