Monday, 16 January 2017

Golden Cross and Death Cross Trading System: Excel Sheet

Golden Cross and Death Cross are very popular strategies for any Trend following Trading system. You might have heard about these terms if you have subscribed for any of the Technical analysis course or tutorial. Even if you haven’t, we would help you understand these terms and its application. In this post, we would also provide you an Excel sheet where you can backtest Golden Cross and Death Cross on any of the Stock or Index. Please read through below.
Read our other Excel based Trading strategies here.

                             

What is Golden Cross and Death Cross?

Golden Cross and Death Cross are important Trend reversal points on a Technical chart of a Stock or Index. Its is based on Moving Average Crossover. It is a general rule that Stock gives a Buy signal when faster moving average crosses above the slower moving average, while its gives a Sell signal when faster moving average crosses below the slower moving average. Golden Cross is indicated when 50 Days simple moving average crosses above the 200 day moving average. And Death Cross is indicated when 50 Days moving average crosses below the 200 day moving average. Either crossover is considered more significant when accompanied by high trading volume.As simple as that! It works perfectly on majority of indices and stocks in a long term.

Strategy Overview

ParamterValue
Preferred TimeframeDaily
Indicators Used50 Days SMA, 200 Days SMA
Buy Condition50 Days SMA is above 200 Days SMA
Short Condition50 Days SMA is below 200 Days SMA
Stop LossNo fixed stop loss, Stop and reverse when excel gives opposite signal
TargetsNo fixed target, Stop and reverse when excel gives opposite signal

Excel Sheet

ParameterDescription
Worksheet NameGolden Cross and Death Cross
InputsStock Name (B4)Name of the Stock or Index. Ex: NSE:NIFTY, NASDAQ:AAPL
Quantity (B5)Number of shares to Buy when Golden Cross or Death Cross happens
Initial Capital (B6)Your initial Trading capital
Number of Days (B7)Number of days to backtest this system
OutputsFinal Capital (E4)Final capital after backtest period.
Profit Points (E5)Total points earned
Total Profit/Loss (E6)Total Profit/Loss in Exact terms
Total Profit/Loss % (E7)Total Profit/Loss in Percentage terms

Screenshot

Golden and Death Cross
Golden and Death Cross

How to use this Excel Sheet

Step 1: Open the sheet from the link provided at the end of this post.
Step 2: Provide inputs in Cells B4 to B7. Make sure that you are connected to the internet.
Step 3: Wait for around 30 seconds. The sheet will update automatically depending on the inputs you provided.
Step 4: Check the outputs in Cell E4 to E7.
Step 5: Take Buy/Short position based on the signal at Position column.

Download Link

Below is the link to this sheet from Google Docs. You can edit it online. There is no need to download it in your local machine.

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