Making money with unconventional thinking?

Making money with unconventional thinking?
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The short answer is yes, but the real question is can you stick with a system though through thick & thin going against what everyone believes to be true? I myself don't have the patience for a system such as this, but this doesn't mean it shouldn't merit consideration from someone who does, so here it is in all its glory. On the daily S&P 500, year to date, given a simple moving average range of 1-50, the 45/27 SMA is the most profitable gaining 18.66%



Ok that's cool but does it hold up over time? Here are the yearly averages over multiple time frames. These are tested from Dec 1 2010 working backwards. I took the cumulative profit from each time frame, and divided it by the number of years covered.

5Yr 1.80%
10Yr 1.57%
15Yr 4.99%
20Yr 6.27%
30Yr 8.81%
60Yr 15.60%



Note: Buy/Sell signals were triggered by closing prices, and orders were filled on the next days open (not like TSP's end of day prices.)

Take care and trade safe... Jason

 

[KevinD]

On the daily S&P 500, year to date, given a simple moving average range of 1-50, the 45/27 SMA is the most profitable gaining 18.66%

I apologize for not getting it but could you explain the buy/sell signals? What triggers a buy and sell?

 

[JTH]

A buy signal is generated when the 45 SMA crosses over the 27 SMA based on closing prices. Then the next day the order is filled at the open. A sell signal is generated when the 45 SMA crosses under the 27 SMA based on closing prices, then the next day the order is filled at the open.