/cash_trigger

This is a Python notebook that explores a stock market timing strategy

Primary LanguageJupyter NotebookApache License 2.0Apache-2.0

Stock Market Cash Trigger
by Ian Kaplan

This notebook explores a stock market timing strategy that is described in David Alan Carter's book Stock Market Cash Trigger (available as an Amazon Kindle book).

In the Stock Market Cash Trigger the 200-day moving average for the S&P 500 (the ETF SPY) close prices are compared with the current close SPY price. When the current close price for SPY trends below the 200-day moving average, this is a signal to move out of equity instruments into bond instruments. An ETF rotation strategy is used to select a bond asset (see the notebook ETF Rotation).

Perhaps the most famous proponent of the 200-day moving average as a market signal is the hedge fund manager Paul Tudor Jones. Consider also that Paul Tudor Jones has a lucky pair of gym shoes that he puts on when trading gets rough.