A study conducted to get an idea on how simple moving average based entry-exit strategy compared with buy and hold strategy on BSE Sensex.

A simple moving average based Entry-Exit Strategy:

1. To exit the sensex every time it crosses below a pre-determined moving threshold
2. Re-Enter only when the sensex crosses above the threshold.
3. Time period is considered from 1 September 2003 (the time when BSE followed free float market cap).

</ these result are considered only by price movement and not by any other factors />

1. Perform best in predicting the drawdowns and move to cash
2. Lags in giving extra-ordinary uptrend when compared with buy and hold

1. Beat Entry-Exit based strategy but not with huge margin
2. Follows a complete cycle of drawdowns (as it does not move to cash)

1. Entry-Exit strategy best outperforms when we take 75 DMA.