Do Moving Averages Matter?

Study Review

One of the best perks of being a quant? At StatsEdgeTrading, we already know what we’re trading tomorrow — no guesswork, no stress. But that doesn’t mean we stop testing.

I recently read a study on the distance between the 21-day and 200-day moving averages as a return predictor. It showed that stocks with the widest spread between those two moving averages tended to outperform.

🧪 So I built it. Backtested it. Graphed it.
💡 It works — not mind-blowingly well on its own, but there's real edge there.

This could:

• Enhance breakout strategies by adding a trend-strength filter

• Help discretionary traders scan for sustained momentum

• Be the seed of a new strategy entirely

📊 Want to see the results and the equity curve? It’s in the free newsletter.

👉 Grab the full breakdown at www.statsedgetrading.com
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