In this video, we will explore the PowerTrend System for trading stocks. The PowerTrend System is a mechanical trend following system that uses the 10-Month Simple Moving Average of a stock to generate clearly defined ‘buy’ and ‘sell’ signals. This enabled us to do historical testing over the past ten years.
The profit/loss for each trade was calculated, and a cumulative total was maintained over the ten year test period. Profits were reinvested. We tested a portfolio of five stocks and five ETFs that are listed below. Profit results do not include commissions.