A Comprehensive Analysis of the Golden Cross Strategy for Swing Traders
Abstract
among swing traders. I analyzed its performance on a selected group of stocks and ETFs, considering the impact of transaction costs and using historical price data for evaluation. The results were visualized through interactive charts. The findings revealed varying performance of
the golden cross strategy across assets, with some stocks generating significant returns while others underperformed. For the ETFs SPY and
QQQ, the strategy yielded modest returns between 15% and 70%. Higher transaction costs negatively affected the strategy’s performance, but
the overall impact was relatively small, indicating that the returns are fairly robust to changes in transaction costs. The study faced several
limitations, such as the unpredictability of future results based on historical performance, the choice of moving average timeframes, limited
asset coverage, and the risk of overfitting. In conclusion, the golden cross strategy provides potential opportunities for swing traders to take
advantage of price trends in various assets. However, its effectiveness is inconsistent across assets and market conditions, warranting further
research to optimize the strategy and enhance its risk-adjusted performance. By addressing the limitations and exploring suggested areas for
future research, we can improve our understanding and application of the golden cross strategy in diverse market conditions and asset classes.
Keywords
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DOI: http://dx.doi.org/10.18686/fm.v9i1.12022
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