DEATH CROSS STRATEGY (Backtested+Rules)

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And in this video, you'll learn:

What is a death cross indicator?
What happens after a death cross.
Death cross explained.
How does the death cross indicator work?
How accurate is the indicator
How well does it perform in a backtest?
What are the implications of a death cross indicator for the stock market?

Are you a trader who's heard of the infamous "Death Cross" but aren't quite sure what it is or how it works? Look no further! In this YouTube video, we'll explain everything you need to know about this bearish technical indicator and its implications for the stock market.

Firstly, let's define what the Death Cross is. It involves two moving averages, a short one and a long one, usually the 50 and 200-day moving averages. When the short moving average crosses below the long one, a Death Cross is formed. This bearish indicator is a signal that a stock or market is in a downtrend, and it's often seen as a precursor to a more significant decline.

But how accurate is the Death Cross indicator? When we backtest the trading rules in our platform, we see that the performance is flat, indicating that there's almost no money to be made from investing in stocks after a Death Cross. Since 1960, there have been only 32 Death Crosses, but it's still a temporary "Kiss of Death" for equities, and it's not a sure thing. As such, traders need to be careful when deciding to stay outside the stock market for an extended period due to the long-term positive trend.

In this video, we'll also explore strategies for managing risk during a Death Cross. We'll provide practical tips for traders to mitigate the risks associated with this event and discuss how it compares to other technical indicators in terms of reliability.

So, if you're a trader who wants to learn more about the Death Cross and its implications for the stock market, this video is for you. Stick until the end to find out how to avoid getting caught in its deadly grip and to learn more about the Golden Cross, the opposite of the Death Cross.

We hope you find this video informative and helpful in your trading journey. Don't forget to subscribe to our channel to stay updated with our latest content, and good luck trading!

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RISK DISCLAIMER
Quantified Strategies (SIA Lofjord) is not an investment advisor. The content and information provided are educational and should not be treated as financial advisory services or investment advice. Trading and investment in securities involve substantial risk of loss and is not recommended for anyone that is not a trained trader or investor – it shall be conducted at your own risk. It is recommended that you never risk more than you are willing to lose. Leverage can lead to substantial losses. Any use of leverage, margin, or shorting is at your discretion. Quantified Strategies (SIA Lofjord) is not responsible for any losses that occur as a result of its content and information.
Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, Since the trades have not been executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representations are made that any account will or is likely to achieve profit or losses similar to those shown.