DislikedThe point is although equity could be constant for a couple of runs SMA is not and it will cross again.Ignored
Here is an article that discusses the idea. Unfortunately the author also uses the word "crosses" instead of "converges with". If we actually look at his last chart though, we do see that as long as he is not trading, the curves only converge and never actually cross.
Semantics aside however, I do think we can consider convergence of the 2 curves (i.e. SMA = Equity) as a cross, so "when the SMA moves down to meet the equity curve, we can begin to trade again."
Attached File(s)
Equity-SMA.zip
4 KB
|
431 downloads