Saturday, May 14, 2016

Looking for best TSP investment buy/sell signals from charting – day 1

So, I am starting my first quest to find the best investment buy and sell signals starting today.
I want to compare buy and hold for 2015 from the first trading day to the last as my investment holding period. 
My conclusion: Buy and hold of a share of C-Fund beats moving average of 50/200 days in 2015. 
Read on:
The black line is the 50 days moving average (EMA50) which I used to track the C-Fund from 1/2/2015 to 12/31/2015. We buy a share at $27.16 of C-Fund on 1/2/2015, and we sell at $27.56 on 12/31/2015. The buy-hold made a profit of $0.40. Let’s compare this to moving average of 50/200 strategy. We buy a share at $27.16 at 1/2/2015 and we follow along the black line of EMA50. We sell the share when the black line drop and first cross over the 200 days moving average (EMA200) – the red line which happens on 9/2/2015. So, we sold at $26.09 on 9/2/2015. The loss is $1.07. We continue to follow the black line until it rise and crosses the red line. We buy it back when the black line rise and cross over the red line which happens on 12/11/2015 at $27.11 we sold at 12/31/2015 at $27.56 for a gain of $0.45. The net loss using EMA50/200 is a net loss of $0.62. Sorry, the picture showed a loss of $1.45. It should be loss of $0.62 instead. This loss is certainly less than the buy and hold profit of $0.40!

No comments:

Post a Comment