A 5-Day and 10-Day Moving Average Crossover Strategy

Summary

This stock strategy uses two simple moving averages to determine when to hold or exit a position. It buys with the full account when the 5-day average is above the 10-day average and there is no current holding. When the 5-day average falls below the 10-day average, it sells the shares if the account has an equity position.

The document describes the entry and exit rules but gives no performance data, risk controls, or testing details. The approach is a basic trend-following signal: it can react late to changes in price direction and may generate repeated trades when averages cross during choppy markets. Its use of the entire account for each entry also leaves position sizing and portfolio risk unspecified.

Key ideas

• The strategy enters a stock position when the 5-day moving average is above the 10-day moving average and no position is held.
• It exits when the 5-day average falls below the 10-day average and shares are held.
• Each entry uses the full account, with no additional position sizing rules described.
• The document provides no backtest results or evidence of profitability.

Tags

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