How do you trade a moving average?

I'm trying to learn more about trading and so I started by trying to trade using a simple SPY 200SMA rule. If SPY > 200SMA, go long, otherwise go to cash. Lot of research papers have talked about this, but implementing it is pretty hard. I tried using stops but my stops (both on the up move and down move) kept getting hit on a random tick and I'd then have to close at a loss. Trying to do it discretionary but it's hard to hit the exact tick and sometimes it touches and goes back in the other direction.

I'm curious how do professional/experienced traders do something like this. Are there software packages for traders that allow you to put in a price and tell it to long above and exit below or do people just get really good at hitting the specific number?

 

Just talking about your personal accounts, the 20ema is a pretty good tool if you're intraday trading. I would do some due diligence and see if there's any relation to the moving averages alignment and your subsequent MAEs or MFEs (maximum adverse/favorable excursions). Do your trades improve or deteriorate in the direction or counter to the direction of the moving averages, and if so, by how much?

 

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