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Economica

Vol. 14 No. 3-4 (2023)
Articles

Profitability of exponential and simple moving average crossover strategy and the profitability of trend trading

Published:
March 20, 2024
DOI Linkhttps://doi.org/10.47282/economica/2023/14/3-4/13490
Authors
,
Balázs Fazekas
View
hu
Keywords
stock exchange stocks technical trading indicators
How To Cite
Selected Style: APA
Tóth, B. L., & Fazekas, B. (2024). Profitability of exponential and simple moving average crossover strategy and the profitability of trend trading. Economica, 14(3-4), 34-42. https://doi.org/10.47282/economica/2023/14/3-4/13490
Abstract

The study focused on trading based on the signals of indicators, specifically examining a strategy using moving average crossovers. One of the main purposes of the paper was to analyse the efficiency differences between the simple and exponential moving average crossover strategies. Additionally, the study explored the impact of trend-following trading on the performance of indicators. The research tested the performance of indicators using the example of companies with the highest market capitalization. The main conclusion of the article is that there was no superior indicator in cases of the examined stocks. Furthermore, during periods of predominantly rising trends, the buy-and-hold strategy outperformed the active trading strategy based on indicators.

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