The Test of Predictive Power of “Moving Average” Indicator on Indian Stock Market through System Design & Back Testing Strategy

Abstract

Specialized investigation enables financial specialists in foreseeing future to value patterns dependent on the data like stock value development, advertise situation and exchanging volume. At the point when specialized examination devices are appropriately applied at the hour of exchanging and contributing, a financial specialist can expect an expansion in progress pace of getting great returns. This exploration paper depends on the utilization of specialized examination device for example Exponential Moving Average (EMA) Crossover. The primary point is to assess and approve EMA Crossover on Nifty&Bank nifty Index which is on NSE.
The resulting goal is to plan framework exchanging arrangement and create back testing system. The experimental investigation incorporates backtesting of daily closing price data to Nifty &Bank Nifty Index from Jan 2013 to Jan 2019. To comprehend the effectiveness of market, back testing of Exponential Moving Average Cross Over methodology is finished with the assistance of Amibroker programming AFL language to create contributing and exchanging grid.