Generates buy or sell signal if monthly candle closes above or below the signal MA. Long positions only.
Inputs: -Change timeframe MA -Change period MA -Use SMA or EMA -Display MA -Use another ticker as signal -Select time period for backtesting
This script is not necessarily written to maximize profits, but to minimize losses. Although it can outperform 'Buy & Hold' on some occasions when there is a multiple month bearisch trend. You can optimise this strategy by changing the signal MA inputs. I would suggest aiming for the best Profit Factor starting from the monthly ("M") setting. You can always fine-tune the results at a lower timeframe.
The option to use another ticker for providing signals can give you a more stable and unified results. For example using AMEX:SPY as signal with default parameters gives better results with NASDAQ:AAPL than if you would use NASDAQ:AAPL itself.
I used the anti-repainting function from PineCoders to prevent repainting. This script is best used for multi-month trading positions & Daily or 4H setting of your chart.