Question
Using the Simple Moving Average algorithm (you can use a simple 2 moving averages, one short 40 days and one long 100 days, crossover), you
Using the Simple Moving Average algorithm (you can use a simple 2 moving averages, one short 40 days and one long 100 days, crossover), you should evaluate the indicators for each price series as well as the trading signal when the short crosses over the long. You do not have to use a signal line but can do so if you wish.
Starting with an initial investment of $100,000 evaluate the following assigned tasks.
Recommend the best selection of the periods to be used. In other words, which short period and long period selection would generate the best profit. Naturally, there are many possibilities and you do not need to exhaustively test all of them. Just give a short and long period selection that would outperform the 40/100 day initial default choice. State your profit on $100,000 using your recommended short/long period choice compared to the 40/100 days.
below data is for few days, but actual data is from 2007 to 2017
| Date | High | Low | Open | Close | Volume | Adj Close |
| 2/1/08 | 7.152143002 | 6.876786232 | 7.116786003 | 6.958570957 | 1079178800 | 6.00281477 |
| 3/1/08 | 7.04964304 | 6.88178587 | 6.978929043 | 6.961785793 | 842066400 | 6.005589962 |
| 4/1/08 | 6.892857075 | 6.38892889 | 6.837500095 | 6.430356979 | 1455832000 | 5.547152042 |
| 7/1/08 | 6.557143211 | 6.079642773 | 6.473214149 | 6.344285965 | 2072193200 | 5.472902775 |
| 8/1/08 | 6.516428947 | 6.099999905 | 6.433570862 | 6.116071224 | 1523816000 | 5.276031971 |
| 9/1/08 | 6.410714149 | 6.010714054 | 6.117856979 | 6.407143116 | 1813882000 | 5.527126312 |
| 10/1/08 | 6.464285851 | 6.264643192 | 6.342143059 | 6.357857227 | 1482975200 | 5.484609604 |
| 11/1/08 | 6.351786137 | 6.071428776 | 6.285714149 | 6.167500019 | 1232285600 | 5.320398331 |
| 14/1/08 | 6.407856941 | 6.256071091 | 6.340000153 | 6.385000229 | 1100450400 | 5.508024216 |
| 15/1/08 | 6.400713921 | 5.88071394 | 6.347143173 | 6.03714323 | 2343278000 | 5.207944393 |
| 16/1/08 | 6.036070824 | 5.596428871 | 5.901071072 | 5.70142889 | 2213845200 | 4.918340683 |
| 17/1/08 | 5.905714035 | 5.657856941 | 5.768214226 | 5.746070862 | 1757859600 | 4.956851482 |
| 18/1/08 | 5.919642925 | 5.70035696 | 5.77535677 | 5.76285696 | 1724343600 | 4.971331596 |
| 22/1/08 | 5.713571072 | 5.214285851 | 5.287857056 | 5.558570862 | 2434754000 | 4.79510355 |
| 23/1/08 | 5 | 4.505000114 | 4.863928795 | 4.966785908 | 3372969600 | 4.284599781 |
| 24/1/08 | 5.025000095 | 4.714643002 | 4.999642849 | 4.842856884 | 2005866800 | 4.177692413 |
| 25/1/08 | 4.96750021 | 4.628929138 | 4.963929176 | 4.643214226 | 1554739200 | 4.005470276 |
| 28/1/08 | 4.757143021 | 4.516070843 | 4.577143192 | 4.643214226 | 1474844000 | 4.005470276 |
| 29/1/08 | 4.742499828 | 4.608929157 | 4.683928967 | 4.697856903 | 1099982800 | 4.052609921 |
| 30/1/08 | 4.837500095 | 4.642857075 | 4.691785812 | 4.720714092 | 1243051600 | 4.07232666 |
| 31/1/08 | 4.880356789 | 4.621428967 | 4.623213768 | 4.834286213 | 1345674400 | 4.170300007 |
| 1/2/08 | 4.878213882 | 4.720714092 | 4.865714073 | 4.776785851 | 1010744000 | 4.120697975 |
| 4/2/08 | 4.853570938 | 4.693571091 | 4.793213844 | 4.701786041 | 899234000 | 4.055998325 |
| 5/2/08 | 4.785714149 | 4.603570938 | 4.658214092 | 4.619999886 | 1141042000 | 3.985445499 |
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