A Single-Stock Moving-Average Crossover Strategy

Summary

This example presents a simple trend-following rule for one Chinese-listed stock. It compares a short moving average of closing prices with a longer moving average: a crossover in which the short average rises above the long average triggers a purchase, while the reverse crossover triggers a sale. The example specifies a five-day short average and a forty-day long average, and describes buying at the open and selling at the close.

The document identifies the stock, daily bar data, a backtest beginning in 2020, and starting capital, but supplies no numerical performance results or interpretation of a backtest chart. It does not discuss transaction costs, slippage, position sizing, signal timing details, or whether the stated execution schedule is consistent with the crossover data. The material is therefore a basic strategy specification, not evidence that the rule is profitable or robust.

Key ideas

• The strategy compares five-day and forty-day moving averages of closing prices.
• A short average crossing above the long average generates a buy signal.
• A reverse crossover generates a sell signal.
• The example applies the rule to one stock using daily data, but reports no quantified performance or trading-cost analysis.

Tags

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