Strategy Logic

This strategy determines asset allocation and hedging based on long-term trends.

The logic is:

1. Select a base asset, moving average period and resolution

2. Compute simple moving average of the asset

3. Price crossing above MA signals long-term bullishness, go long the asset

4. Price crossing below MA signals long-term bearishness, go short the asset

5. Can also go long-only or short-only

6. Judge long-term trend using asset price versus its MA

7. Take opposing position for hedging short-term fluctuations

The strategy hedges near-term risks and focuses on the asset's secular trend, allowing steady gains.

Advantages

• Simple MA system to determine long-term trend

• Long/short pairing effectively hedges systemic risks

• Clear long and short signals

Risks

• MA lags price movements

• Holding costs of long-term positions

• Needs risk management across multiple legs

Summary

This strategy hedges using long-term and short-term asset combinations, emphasizing risk management. But MA lag and holding costs require consideration.