Is there a way to back test using the moving average? For example, I would
like to back test stock index data. I would like to use the moving average
information to give a buy or sell signal. If the security data point was
above the moving average, we would own the security and if the data point was
below the moving average, we would be out of the security. I would like to
take the days we own the security and calculate an annualized rate of return.


Thanks,

billregal wrote:
Is there a way to back test using the moving average? For example, I would
like to back test stock index data. I would like to use the moving average
information to give a buy or sell signal. If the security data point was
above the moving average, we would own the security and if the data point was
below the moving average, we would be out of the security. I would like to
take the days we own the security and calculate an annualized rate of return.

Not sure what you mean by "back test" but if you want to compare data
points to the moving average just calculate the moving average in the
worksheet and compare to the data column.