Key Moving Average Breakout: Stock Screener and Backtest | March 27

The purpose of this analysis is to discover which stocks have the best performing Key moving Average Breakout strategies which indicate the potential start/continuation of a positive medium to long term trend.

The 2 key moving average breakout patterns considered in this article are the following:

  • Start or continuation of a positive medium-term trend:
    Price crossed above 50-day Moving Average
  • Start or continuation of a positive long-term trend:
    Price crossed above 200-day Moving Average

The best performing strategies are determined based on the following 3 phases:

  • Stock Screener:
    Identify which stocks have shown a key moving average breakout pattern in the last trading session.
  • Backtest:
    Carry out a test on historical data to see how the stocks performed in the following 20 days, 60 days, 120 days after the same key moving average pattern appeared in the previous years. Furthermore, a test is carried out assuming the presence of a stop loss and a take profit.
  • Most performing strategies:
    Select the stocks that have the best strategies based on how much they have risen in price after the pattern appeared in the past and how many times the pattern has led to a price increase compared to the total times it has appeared.

This analysis aims to provide an answer to the following example question:
“How does Apple Inc (AAPL) perform in the 60 days after it breaks above the 50-day moving average?”

An answer could be the following:
“In recent years, Apple has breakout the 50-day moving average 25 times. 85% of the time after 60 days from the breakout it was at a higher price. By buying Apple shares at each breakout and selling them 60 days later you would have obtained a 266.6% return.”

Below is a summary of the number of stocks, strategies and trades analyzed that lead to the results present in the following sections:


Table of contents

This article is divided into the following 2 sections:

1. Backtest: How It Works
contains an explanation of how the backtest works and the key metrics.

2. Most Interesting Strategies
contains the most interesting and profitable strategies for each of the chart patterns/trading signals previously mentioned.


The content of this article is for informational purposes only and in no case constitute an investment advice. Past performance is no guarantee of future performance. To read the complete disclaimer click here.


1. Backtest: How It Works

The backtest is a test carried out using historical data with the aim of understanding how a strategy would have performed in the past based on certain criteria. In this case, the backtest is applied to the stocks identified by the stock screener and therefore that in the last trading session showed one of the trading signals / chart patterns previously mentioned.

The main purpose of the backtest is to understand how these stocks have performed in the period after the same trading signal / chart pattern appeared in the past.

How It Works?

Key Metrics


2. Most Interesting Strategies

This section allows you to deepen the results of the backtest and contains the most interesting and profitable strategies.

For each strategy present in each ranking there are the key metrics explained previously in the “Backtest” section. Click here to go there directly.

Price ca = Price Crossed Above
MA = Moving Average

SL = Stop Loss
TP = Take Profit


Price crossed above 50-day MA

This subsection focuses on the trading signal / chart pattern which refers to the potential start of a mid-term positive trend and is identified with the company’s price crossed above the 50-day moving average.

Example: Price crossed above 50-day Moving Average

The following table shows the most interesting strategies and indicates the ticker and company name, the chart patterns/trading signal used for the simulation (ENTRY Strategy), the strategy used to close positions (EXIT Strategy), the number of trades executed (No. Trades), the number of positive trades (Positive Trades) and the overall return of the strategy (Total Return).

Click Here to Unlock

Are you a member? Login


Price crossed above 200-day MA

This subsection focuses on the trading signal / chart pattern which refers to the potential start of a long-term positive trend and is identified with the company’s price crossed above the 200-day moving average.

Example: Price crossed above 200-day Moving Average

The following table shows the most interesting strategies and indicates the ticker and company name, the chart patterns/trading signal used for the simulation (ENTRY Strategy), the strategy used to close positions (EXIT Strategy), the number of trades executed (No. Trades), the number of positive trades (Positive Trades) and the overall return of the strategy (Total Return).

Click Here to Unlock

Exclusive Content
for Members

Are you a member? Login

If you are NOT a member keep reading!


EVERYTHING
YOU NEED
FOR YOUR TRADING

Meet your all-in-one membership

SCREENER
Find out which Stocks and Crypto show the best Chart Patterns and Trading Signals based on daily and weekly data.

BACKTEST
Find out which stocks have shown the Best Results after a certain Chart Pattern or Trading Signal has appeared in the past.

CHART PATTERNS
Discover the Stocks and Crypto showing the best Chart Patterns; Breakout of Resistances, Trendlines and Key Moving Averages, Bullish Reversal on MACD and SuperTrend and many more…

TREND ANALYSIS
Discover the Direction, Strength and Timing of Change in the Price Trend of the Top 500 Wall Street Stocks and Top 50 Crypto.

STOCK ANALYSIS
Discover the most interesting companies based on Key Business Data; Revenue, Operating and Net Income, Business Margins, Cash Flows and much more…

EARNINGS REPORTS
Discover the analysis on the most interesting companies Before and After releasing the Earnings Reports.

WHAT WE OFFER

Satisfied or Refunded
Not satisfied? No problem. Just let us know within 14 days and you will get a full refund without having to give us an explanation.​

Secure Payments
Choose from the 2 world leaders in digital payments that guarantee 100% security. PayPal and Stripe.

20% OFF | Save 2 Months
Take advantage of the 20% discount on 1-Year Membership.
Access hundreds of exclusive content for only $1.80 per week.

What are you waiting for?

Access hundreds of exclusive content with the BullDude.com Membership

Everything You Need For Your Trading

Meet your all-in-one membership

👉 Screener and Backtest

👉 Chart Patterns

👉 Trend Analysis

👉 Key Business Data

👉 Earnings Reports

Learn More
20% OFF | only $1.80 per week


Data provided by Financial Modeling Prep
The content of this article is for informational purposes only and in no case constitute an investment advice. Past performance is no guarantee of future performance. To read the complete disclaimer click here.