200-Day Moving Average Strategy Example

This post explains how to create a new strategy from a custom indicator.

Start by creating a custom indicator to capture the cross down of the 200-day moving average. This post explains how to do this.

From the top page navigation menu on the right, click the icon and select the chart page. This will open a new chart. Now select the symbol of choice. We’ll use Bitcoin (BTCUSD) for the purpose of this example.

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Select a new chart and choose a symbol

Next click the calendar icon to set the date range. Because the indicator is based on a 200-moving average, the chart needs to have enough bars so that it can create data points.

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Set an appropriate date range

Click the Indicators dropdown from the toolbar and in the search box, type the name of your custom indicator. Now click on the indicator from the list select it and add it to the chart.

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Add the custom indicator to the chart

The indicator should now show markers on the chart at bars where there are cross down events. Scroll the chart using the mouse wheel or your device’s equivalent.

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View the cross down events

Next click on the hat icon from the toolbar. This will start training mode and display the training panel. Click anywhere in the page or use the close icon to collapse the panel. Training mode should still be active which is highlighted by the hat icon displayed in red.

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Switch training mode on

With the chart zoomed in click on one of the candles that has a cross down event. This should display a circle which marks the open trade of a training point. Now click on a second candle to mark the closing. This creates one training point and this should be added to the list in the training panel.

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Adding the first training point

This is a point indicator so we only need one training example. From the training panel, click the Train button. This should run the training system and display a message once complete. When training is done, click on the Strategies tab from the page navigation menu.

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Run training

The new strategy should appear at the top of the list. To change the name, click on the icon to open the settings pane. Now click the settings tab, and enter a name for the new strategy. Click save. One saved, the list should update with the new name.

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Enter a new name

Now, to check that the strategy was properly trained, we can compare the strategy to our original indicator. Open a new chart again, and follow the same procedure to add an indicator. This time, enter the new name that you chose in the step above. Click on the name of the strategy. When used as an indicator, the strategy will just output its value on the chart.

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Add the strategy and indicator on to a new chart

Secondly, add the custom indicator to the chart following the steps as before. Remember to expand the date range of the chart if necessary.

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Check that the cross down events line up

The sell signals created by the strategy, should line up with our indicator as the image above shows. This shows that the strategy was properly trained with of our custom indicator.

Risk Disclosure: Information given on this website is for general purposes only and should not be construed as investment advice. Certain instruments shown here are complex and may come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money. Market data displayed is indicative and is not a solicitation to buy or sell.