The idea
The classic long-term trend signal: SMA 50 crossing above SMA 200. Very few trades and late entries, but it keeps you on the right side of the big moves.
Strategy guide · Long-term trend · long
Golden Cross 50/200 strategy: exact rules, strengths and weaknesses.
The classic long-term trend signal: SMA 50 crossing above SMA 200. Very few trades and late entries, but it keeps you on the right side of the big moves.
Entry rule
Buy when the 50-period SMA crosses above the 200-period SMA.
Exit rule
Sell when the 50 SMA crosses back below the 200 SMA (the "death cross"), or at a 5% stop loss.
Where it works
Long bull markets on the daily chart. It gives very few trades and keeps you in the big moves.
Where it fails
It is slow: the signal arrives well after the low, and the exit arrives well after the high.
The common mistake
Using it on short timeframes, where the 200-candle average means little and signals are rare and late.
Backtest it yourself
Sign in, open Genni Strategies and pick "Golden Cross 50/200" from the leaderboard, or build it with the rule builder. Choose a coin and timeframe and press "Run backtest" to see every trade on up to 1,000 real candles, fees included. "Start paper trading" then follows it live without money.
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Questions
Frequently asked questions
What are the rules of the Golden Cross 50/200 strategy?
Entry: Buy when the 50-period SMA crosses above the 200-period SMA. Exit: Sell when the 50 SMA crosses back below the 200 SMA (the "death cross"), or at a 5% stop loss.
Does the Golden Cross 50/200 strategy work?
Very few trades and late entries, but it keeps you on the right side of the big moves. It tends to do well here: Long bull markets on the daily chart. It gives very few trades and keeps you in the big moves. It tends to lose here: It is slow: the signal arrives well after the low, and the exit arrives well after the high. Past results do not predict future results.
How can I backtest the Golden Cross 50/200 strategy for free?
Sign in, open Genni Strategies and pick "Golden Cross 50/200" from the leaderboard, or build it with the rule builder. Choose a coin and timeframe and press "Run backtest" to see every trade on up to 1,000 real candles, fees included. "Start paper trading" then follows it live without money.
This page is education, not investment advice. Trading involves substantial risk of loss. Read next: Trading indicators · Trading strategies · Candlestick patterns