13/48 Trading Strategy (Risks, Rules And Performance Analysis)
The 13/48 trading strategy is a technical analysis method that uses moving averages to identify potential trading opportunities.
The strategy is based on the idea that when the 13-period exponential moving average (EMA) crosses above the 48-period EMA, it is a bullish signal that indicates that the price is likely to rise.
We backtest the following trading rules:
- If the 13-period EMA crosses above the 48-period EMA, it is a bullish signal. This means that you should buy the stock or market.
- If the 13-period EMA crosses below the 48-period EMA, it is a bearish signal. This means that you should sell the stock or market.
This is a very simple strategy to backtest. We looked at many different markets, and it works best on stocks. Below is the equity curve for the cash index of S&P 500 from 1960 until today.
You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/13-48-trading-strategy/
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