SMA Golden Cross
A trend-following rule that buys when the 50-day average crosses above the 200-day average (golden cross) and sells when it crosses back below (death cross).
Entry Logic
Buy when the 50-day SMA crosses above the 200-day SMA. Signals are computed at the close, so the trade executes on the next day's close.
Exit Logic
Sell when the 50-day SMA crosses back below the 200-day SMA (the death cross).
How Rules Combine
Compare two simple averages of closing prices. When the fast average overtakes the slow one, the recent 50-day mean sits above the long-term 200-day mean — a sign the medium-term trend has turned up.
When It Works (Market Edge)
Long, sustained bull markets: the pair flips rarely and each buy holds for months, capturing most of the trend.
When It Fails
Sideways markets and sharp corrections: the averages cross repeatedly near the end of every swing, and each cross costs a round trip of fees plus a losing trade.
Common Myths
Myth: A golden cross reliably predicts a bull market.
Truth: It is a lagging description of what already happened. By the time the 50-day average is above the 200-day, the rally is often weeks old.
Myth: The death cross means you should sell everything.
Truth: In a long uptrend death crosses can be false breakdowns; price often recovers back above both averages within weeks.
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5Y Rankings
Performance across major assets, sorted by return.
| Asset | Total Return | Win Rate | Profit Factor | Max Drawdown | Avg Duration | Trades | Action |
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