TAN (Invesco Solar ETF) Moving Averages Strategy: Boost your Trading

Quantitative Strategies & Backtesting results for TAN

Here are some TAN 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.

Quantitative Trading Strategy: Long term invest on TAN

The backtesting results for the trading strategy, spanning from November 2, 2016, to November 2, 2023, reveal promising statistics. With a profit factor of 1.46, the strategy demonstrates a positive relationship between gains and losses. The annualized ROI stands at 13.57%, indicating steady growth over the tested period. On average, trades were held for 7 weeks and 5 days, highlighting the strategic approach of the strategy. With an average of 0.06 trades per week, the strategy exhibits a conservative trading frequency. Over the course of the testing period, 25 trades were closed, resulting in an impressive return on investment of 96.91%. Although the winning trades percentage stands at 40%, the overall profitability and ROI showcase the efficacy of the strategy.

Backtesting results

Nov 02, 2016

Nov 02, 2023

TAN

ROI

96.91%

End Capital

$

Profitable Trades

40%

Profit Factor

1.46

No trades were made during this period.

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https://app.vestinda.com/share/b13285018744

Quantitative Trading Strategy: VWAP and EMA Crossover or Confirmation on TAN

Based on the backtesting results from November 2, 2016, to November 2, 2023, the trading strategy showed promising performance. The profit factor stood at 1.58, indicating a favorable ratio of profits to losses. The annualized return on investment (ROI) reached an impressive 19.8%, demonstrating consistent growth over the tested period. The average holding time for trades was approximately 1 week and 5 days, suggesting that the strategy sought short to medium-term opportunities. With an average of 0.25 trades per week and 93 closed trades, the strategy appeared to be selective in executing its positions. Despite a winning trades percentage of 35.48%, the trading strategy outperformed the buy and hold strategy, generating excess returns of 7.12%. Overall, these results indicate the potential effectiveness of the trading strategy in the given period.

Backtesting results

Nov 02, 2016

Nov 02, 2023

TAN

ROI

141.45%

End Capital

$

Profitable Trades

35.48%

Profit Factor

1.58

No trades were made during this period.

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https://app.vestinda.com/share/b1328629fd65

Mastering Moving Averages for TAN Trading

1. Select the time frame and type of moving average (e.g., 50-day simple moving average).
2. Plot the moving average line on the TAN price chart.
3. Observe the relationship between the moving average line and TAN's price movement.
4. When the TAN's price is consistently above the moving average, it may signal an uptrend.
5. When the TAN's price is consistently below the moving average, it may signal a downtrend.
6. Use crossovers of shorter and longer moving averages to identify potential buy or sell signals.
7. Buy TAN when the shorter moving average crosses above the longer moving average.
8. Sell TAN when the shorter moving average crosses below the longer moving average.

Mistake-proofing TAN's Moving Average Analysis

When conducting moving average analysis, there are several common mistakes that investors should be aware of. One mistake is using the wrong time frame for the moving average. It is important to choose a time frame that aligns with the investor's goals and trading strategy. Another mistake is relying solely on the moving average to make buy or sell decisions. Other technical indicators and fundamental analysis should also be considered. Additionally, some investors make the mistake of not adjusting the moving average as the market conditions change. It is important to regularly reassess and adjust the moving average to stay in line with the current market trend. Lastly, investors should be cautious of using moving averages with volatile and thinly traded securities, such as TAN, as it may lead to false signals.

Exploring Moving Averages for TAN Trading

Moving averages are a key tool in TAN trading, helping traders to understand the market trend. They are calculated by taking the average price of a security over a specific time period. TAN traders commonly use the 50-day and 200-day moving averages to determine potential entry and exit points. When the price is above the moving average, it suggests an uptrend, while a price below indicates a downtrend. The crossing of the moving averages can indicate a change in trend direction. Moving averages provide a smooth line that helps filter out short-term price fluctuations. They are commonly used to confirm trends and identify support and resistance levels. By understanding how moving averages work, TAN traders can make more informed decisions in their trading strategies.

Mastery of TAN Charts: Moving Averages Setup

When setting up moving averages on TAN charts, it is important to consider the time frame. Shorter time frames, such as 20-day moving averages, provide more current information on price trends. Longer time frames, like 200-day moving averages, offer a broader perspective on the overall trend. By using different moving averages, investors can identify potential entry and exit points for trading. For example, a crossover of the shorter-term moving average above the longer-term moving average may signal a bullish trend. On the other hand, a crossover below the longer-term moving average could indicate a bearish trend. It is crucial to use moving averages in conjunction with other technical analysis tools for more accurate predictions.