Building a Dual Moving Average Crossover Strategy for a Chinese Stock

Summary

This beginner tutorial explains a complete daily equity strategy using one named Chinese stock as its example. It selects the instrument, retrieves 20 days of closing prices, calculates 5-day and 20-day simple moving averages, and buys when the shorter average is above the longer one. It closes the position when the relationship reverses. The example uses target-percentage orders for buying and a target-share order to sell, then describes running a historical backtest and enabling simulated trading with signal notifications.

The document teaches the mechanics of expressing a basic crossover rule and connecting it to a platform’s data and order functions. It reports no performance results or comparative evidence. The rules are simplified: they use the averages’ current relationship rather than an explicit crossover event, can issue orders repeatedly while a condition remains true, and allocate the full portfolio to one stock. The tutorial does not discuss transaction costs, slippage, risk controls, or the stock-selection rationale, so the example is instructional rather than evidence of a robust strategy.

Key ideas

• A strategy needs a defined instrument and explicit entry and exit conditions.
• The example compares 5-day and 20-day averages of daily closing prices.
• It targets full allocation when the shorter average is higher and zero shares when it is lower.
• Historical backtesting and simulated trading are presented as later workflow steps.
• The document provides no performance evidence or risk-control framework.

Tags

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