NEW Trading System: Mean-Reversion (Stocks Over 50 Day MA)
More free trading systems and market research: http://www.asxmarketwatch.com/
This week we put to the test a broader market Mean Reversion trading system, called out by Chris Weston on the ASX. It states that when fewer than 10% of ASX Top 200 stocks are above their 50 Day Moving Average, then that is (historically) a good time to buy.
But is it really? We put it through its paces.
We look back over a longer timeframe - 15 years instead of 5, and do a monte carlo test (1000 random variations of stocks in the trading system) instead of just one back-test.
The results may surprise you!
Have a great week - Dave McLachlan
http://www.asxmarketwatch.com/