When a short-term moving average and a long-term average intersect, the golden cross or the death cross appears.

The golden cross occurs when a short-term moving average crosses above a long-term moving average, indicating a potential rally;

Conversely, the death cross appears when a short-term moving average crosses below a long-term moving average, sending a bearish signal.

Combining the two technical patterns, a buy signal is indicated when a golden cross occurs, and a sell or close position signal is indicated when a death cross occurs, this is the "dual moving average strategy".

This strategy is also applicable to quantitative trading. The program automatically seeks to catch the uptrend for you.

How to set up this strategy in Quant?

It’s available in moomoo/Futubull’s Quant feature, where quantitative trading is made as easy as building with LEGO bricks.

Also, this feature is free for all moomoo users.

Open Quant, after completing getting-started tasks, we’ll offer 3 strategies for your reference, including the moving average strategy.

All you need is to set the parameters, including the underlying asset, candlestick time frame, moving average periods, and position sizing.

Then tap Backtest to run the strategy and see how it performs historically.

When everything is all set, the strategy is ready to be executed through your brokerage account.

Please note that:

The dual moving average strategy is more suitable for established upward trends.

Amid fluctuations, the frequent occurrence of death cross may cause the program to repeatedly close positions.

Apart from dual moving average strategy, there’re other strategies available.

You can even construct your own trading strategy using Quant on moomoo!