Sample alert: bullish 5-day EMA cross of 10-day EMA

On Friday I posted results of a crossover system using a 5-day exponential moving average (EMA) and a 10-day exponential moving average (EMA). The current test utlises the Zignals historical test feature of stock alerts to study returns over a 30-, 60-, and 90-day period for the same signal crossovers. Two sets of stock lists were used, each of which can be copied as the user wishes:

Active Trader (US): AAPL, BA, C, CAT, CSCO, DIS, GM, HPQ, IBM, INTC, IP, JPM, KO, MSFT, SBUX, T, WMT

FTSE Select (UK): AGA_L, AVE_L, BB_L, BUR_L, COLT_L, CSR_L, DDT_L, DEB_L, DRX_L, FCAM_L, GFS_L, GNS_L, HIK_L, ISAT_L, LAD_L, LSE_L, MCRO_L, MGNS_L, NFDS_L, PFC_L, PFG_L, PNN_L, RGU_L, RRS_L, SCHE_L, TATE_L, TLW_L, UKC_L

When these stocklists were run against the aforementioned moving average crossover strategy the following returns were achieved over 30-days:


The overall figure represents the maximum, minimum and average gain for all of the component stocklist stocks. To get results for individual stocks one only has to click on the [+]. For example in AAPL there were 20 trades, 70% of which were profitable:


It needs to be noted the Max/Min/Close quoted for FTSE traded stocks is in pence, whereas US stock prices are given in dollars. The following two charts show the 30-, 60-, and 90-day return for an upside cross of the 5-day EMA on the 10-day EMA. What is readily apparent is the poor performance of FTSE stocks compared to US listed stocks - although US stocks could hardly be accused of been strong performers; eeking out 2.7% over a 90-day period.

FTSE returns over 30-,60-, and 90-day


Active Trader returns over 30-,60-, and 90-day


Both the win percentage and the time-period returns were lower than buying a 20-day high, but is this the best way forward? Join today and try your stock alerts.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts, and stock charts website