The strategy goes long when the faster 50 (the of the last 50 bars) crosses above the slower 200. Orders are closed when the 50 crosses below the 200. This simple strategy does not have any other stop loss or take profit money management logic. The strategy does not short and goes long only!
Here is an article explaining the "golden cross" strategy in more detail:
On the S&P 500 index (symbol "SPX") this strategy worked on the 81% since price data is available since 1982. And on the DOW Jones Industrial Average (symbol "DOWI") this strategy worked on the 55% since price data is available since 1916. The low number of trades is in both cases not statistically significant though.
All trading involves high risk; past performance is not necessarily indicative of future results. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated 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 representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
//@version=2 strategy("Golden Cross, SMA 200 Long Only, Moving Average Strategy (by ChartArt)", shorttitle="CA_-_Golden_Cross_Strat", overlay=true) // ChartArt's Golden Cross Strategy // // Version 1.0 // Idea by ChartArt on June 19, 2016. // // This moving average strategy is very easy to follow: // // The strategy goes long when the faster SMA 50 (the // simple moving average of the last 50 bars) crosses // above the SMA 200. Orders are closed when the SMA 50 // crosses below SMA 200. The strategy does not short. // // This simple strategy does not have any other // stop loss or take profit money management logic. // // List of my work: // https://www.tradingview.com/u/ChartArt/ // // __ __ ___ __ ___ // / ` |__| /\ |__) | /\ |__) | // \__, | | /~~\ | \ | /~~\ | \ | // // // Input switch1=input(true, title="Enable Bar Color?") switch2=input(false, title="Show Fast Moving Average") switch3=input(true, title="Show Slow Moving Average") movingaverage_fast = sma(close, input(50)) movingaverage_slow = sma(close, input(200)) // Calculation bullish_cross = crossover(movingaverage_fast, movingaverage_slow) bearish_cross = crossunder(movingaverage_fast, movingaverage_slow) // Strategy if bullish_cross strategy.entry("long", strategy.long) strategy.close("long", when = bearish_cross ) // Colors bartrendcolor = close > movingaverage_fast and close > movingaverage_slow and change(movingaverage_slow) > 0 ? green : close < movingaverage_fast and close < movingaverage_slow and change(movingaverage_slow) < 0 ? red : blue barcolor(switch1?bartrendcolor:na) // Output plot(switch2?movingaverage_fast:na,color = change(movingaverage_fast) > 0 ? green : red,linewidth=3) plot(switch3?movingaverage_slow:na,color = change(movingaverage_slow) > 0 ? green : red,linewidth=3) // alertcondition(bullish_cross, title='Golden Cross (bullish)', message='Bullish') alertcondition(bearish_cross, title='Death Cross (bearish)', message='Bearish')