A 10/240 Moving Average Crossover Strategy with 80% Cash Allocation

Summary

This strategy uses a short moving average and a long moving average to generate entry and exit signals. It buys when the 10-period average crosses above the 240-period average, allocating 80% of available cash, and sells the entire position when the short average crosses below the long average. The trade size is rounded to a multiple of 100 shares.

The document provides indicator logic and position rules, but no backtest, performance results, asset universe, or evaluation period. It also does not describe stop losses, transaction costs, or how the strategy handles repeated signals beyond checking whether a position is already held. Moving average crossovers can lag price changes and may generate repeated entries and exits in choppy markets, so the stated rules alone do not establish profitability or suitability for a particular market.

Key ideas

• The strategy buys when the 10-period moving average crosses above the 240-period average.
• Each entry uses 80% of available cash, with quantity rounded to a multiple of 100 shares.
• The strategy sells the full position when the short average crosses below the long average.
• The document gives rules but no backtest results or transaction cost analysis.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.