Average return or market-neutral strategy
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During the whole existence of financial markets, there are a great number of trading strategies, some of which have proven their effectiveness over time, but most of them only help to drain the deposits. Today we are not talking about a standard trading strategy such as scalping or swing trading, but about a strategy to return to the average, also known as a market-neutral strategy. It’s a rather complicated strategy, which is quite different from the one published on the network and most likely you will not use it, but despite this, it helps to broaden the trader’s horizons and see the markets in a slightly different light. Let´s analyse what exactly this strategy is.
Moving average
Let’s start with an easy one. As you can understand from the name of the strategy, the main indicator that can be used for its implementation -is the moving average or Moving Average (MA). Moving Average allows calculating the average price of a financial instrument for a certain period of time. Moving Average — is the most popular and used indicator among all existing ones, due to its simplicity and informative character. The indicator is applied to a chart and the way it’s located relative to the asset price allows us to make an assumption about…