/biz/ - Business & Finance

>>23507716
>but then there also are people who say "buy if under 200 SMA"
This is true. The old "buy low sell high". The question becomes what is low and what is high. My problem with the idea is you are going against the trend and trying to beat the overall market, something that is fiendishly difficult. My take on trading is to go with the market just multiply its returns with leverage. So if the market is going up I want to be in. If it's down, I want to be out.
My strategy is also based on a paper that backtested the idea of selling below the 200 day and buying above it with 3x leverage going back to 1928 and it obliterates the S&P returns and even obliterates the simulated returns of a 3x leveraged hold of SPXL/UPRO going back the same amount of years. I haven't seen any buy low/sell high strategies going back like that and as systematic with nearly the returns.
Paper here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2741701