Summary of Best Trading Indicator To Build A Strategy Upon (100 Year Back Test!)

The video discusses a trading strategy based on the 10-month moving average, which has shown significant historical success in mitigating risks and enhancing returns in the stock market, particularly when applied to the S&P 500 Index. The strategy is rooted in research conducted by Meb Faber in 2013 and is favored by billionaire trader Paul Tudor Jones.

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Notable Quotes

01:24 — « Its simplicity falls into the category of if it was that simple then everybody would be doing it, which is precisely why many dismiss the idea. »
02:36 — « It's essentially a mechanical trend following system which limits risk and removes emotion from decision making. »
04:17 — « The key however is not the endpoint value but the journey getting there. »
06:06 — « Although it could be used as a standalone strategy, it could be used as a foundation for all your strategies in the stock market. »
09:42 — « The beauty of this strategy is manifold; it's a mechanical system that removes emotion, reduces drawdown significantly, and is used on a diversified index covering 500 of the largest companies in the US. »

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Business and Finance

Video