In this Trend Trading Strategy, we first plot 42 SMA and 252 SMA.
Then we take the difference of 42 SMA with 252 SMA.
We define a threshold value SD also called Regime.
When the 42 SMA -252 SMA difference is greater than SD, we enter a long trade.
When 42 SMA - 252 SMA difference is between +/- SD, we don't enter into a trade.
When 42 SMA - 252 SMA difference is lower than -SD we enter into a short trade.
In this blog post, I have posted the python code that does all the calculations for this trend trading strategy.
In the end I have plotted the equity curve for this trend trading strategy.
Then we take the difference of 42 SMA with 252 SMA.
We define a threshold value SD also called Regime.
When the 42 SMA -252 SMA difference is greater than SD, we enter a long trade.
When 42 SMA - 252 SMA difference is between +/- SD, we don't enter into a trade.
When 42 SMA - 252 SMA difference is lower than -SD we enter into a short trade.
In this blog post, I have posted the python code that does all the calculations for this trend trading strategy.
In the end I have plotted the equity curve for this trend trading strategy.
