SP400 (S&P 400) Moving Averages Trading Strategies: Optimize Your Investments

Quant Strategies & Backtesting results for SP400

Here are some SP400 trading strategies along with their past performance. You can validate these strategies (and many more) for free on Vestinda across thousands of assets and many years of historical data.

Quant Trading Strategy: Strategy for the long term portfolio on SP400

According to the backtesting results for the trading strategy covering the period from February 24, 2020, to November 2, 2023, the strategy exhibits promising statistics. The strategy demonstrates a profit factor of 1.37, indicating that for every dollar risked, $1.37 was gained. The annualized return on investment (ROI) stands at 3.11%, signifying a consistent growth rate. On average, the holding time for positions lasted approximately 10 weeks, highlighting a tendency for longer-term investments. The frequency of trades was modest, averaging 0.05 trades per week. The total number of closed trades is recorded at 10. The calculated return on investment throughout the specified period amounts to 11.53%, while the winning trades percentage reached 30%. Overall, these backtesting statistics illustrate positive potential for the trading strategy.

Backtesting results

Feb 24, 2020

Nov 02, 2023

SP400

ROI

11.53%

End Capital

$

Profitable Trades

30%

Profit Factor

1.37

No trades were made during this period.

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https://app.vestinda.com/share/b1332701e965

Quant Trading Strategy: CMO Reversals with SuperTrend and Engulfing Patterns on SP400

Based on the backtesting results statistics for the trading strategy from November 2, 2022 to November 2, 2023, the profit factor was found to be 0.27. This signifies that for every unit of risk taken, only a fraction of it was profitable. The annualized return on investment (ROI) was -5.01%, indicating a negative performance over the observed period. On average, the holding time for trades was approximately 2 days and 4 hours, implying relatively short-term positions. The average number of trades executed per week was 0.13, suggesting a low frequency strategy. Out of the 7 closed trades, only 42.86% were profitable, showcasing a relatively lower success rate.

Backtesting results

Nov 02, 2022

Nov 02, 2023

SP400

ROI

-5.01%

End Capital

$

Profitable Trades

42.86%

Profit Factor

0.27

No trades were made during this period.

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https://app.vestinda.com/share/b13327915dc3

SP400 Moving Averages: Beginner's Step-By-Step Instruction

1. Select the desired time period for your moving average, such as 10 days.
2. Gather the closing prices of the SP400 index for the selected time period.
3. Add up the closing prices and divide the total by the number of days to calculate the moving average.
4. Repeat the process for each consecutive day, updating the moving average accordingly.
5. Plot the moving average on a graph to visualize the trend.
6. Compare the moving average with the current SP400 index value to determine the trend.
7. Consider buying when the SP400 index value crosses above the moving average.
8. Consider selling when the SP400 index value crosses below the moving average.

Moving Averages for Locating Support and Resistance (SP400)

Identifying support and resistance levels can be done effectively using moving averages. Moving averages are a popular technical analysis tool that helps traders determine potential areas of buying or selling pressure. To identify support levels, traders can look for prices that consistently bounce off a moving average. These levels often act as a floor for price action. On the other hand, resistance levels can be identified when prices consistently fail to break above a moving average. This indicates a ceiling for price action. By using moving averages, traders can gain insight into the strength of these support and resistance levels, providing valuable information for making trading decisions. It is important to note that the SP400 moving average can also be used to identify support and resistance levels specifically for the S&P 400 index.

Optimal Timeframes for Moving Averages in SP400

When it comes to choosing the right timeframes for moving averages, there are a few factors to consider. Shorter timeframes, such as 5 or 10 days, are better suited for short-term traders who want to capture quick market movements. Conversely, longer timeframes, such as 50 or 200 days, are commonly used by long-term investors looking for broader trends. The right timeframe for moving averages depends on the trader's strategy, timeframe for holding positions, and level of risk tolerance. Additionally, different assets and markets may require different timeframes. For example, longer timeframes may be more appropriate for less volatile assets, while shorter timeframes may be beneficial for more volatile ones. Ultimately, choosing the right timeframe is a personal decision based on individual preferences and trading objectives.

'Synergistic Approaches: Maximizing SP400 Moving Average Strategies'

When it comes to technical analysis, combining moving averages with other indicators can provide more robust trading signals. One popular approach is to use the Moving Average Convergence Divergence (MACD) indicator in conjunction with moving averages. The MACD measures the difference between two moving averages and can help identify bullish or bearish trends. Another useful indicator to consider is the Relative Strength Index (RSI), which measures the speed and change of price movements. By combining moving averages with the MACD and RSI, traders can gain a deeper insight into market trends and potential entry or exit points. For example, if the SP400 index is trending upward and the MACD indicates a bullish crossover, it may be a good time to buy. However, it's important to remember that no indicator is foolproof, and it's always wise to use multiple indicators for confirmation before making trading decisions.