Builds on top of the simple 200 day moving average concept, but uses a short window to determine whether there is positive momentum in the market. The optimized short window was a 20 day simple moving average.
Calculate a simple 200 day moving average using the closing prices of the ETF SPY. If the current price SPY is above the 200 SMA, I will long the security, otherwise, move to cash. This is a simple momentum strategy, but powerful in that it almost completely avoids the 2008 Financial Crisis.
I originally had to read this book in high school as part of my English curriculum. At the time, I could barely get through the first few chapters without dozing off; teenage me was not particularly insightful. However, after gaining some maturity in my final year of Undergrad, I decided to revisit this book and…