Portfolio Boss Documentation

Simple Moving Average (SMA) Index Filter



This filter is similar to the “Simple Moving Average (SMA) Position Filter”, but instead of calculating the instrument's SMA, this filter calculates an index's SMA, and then looks whether the last closing-price of that index is above or below the SMA, to decide whether or not to trade your Portfolios.

Preferably, the index in question has good correlation to your Portfolios.

Basing your decision on an index gives you more safety as the index represents the market. If the index crosses below its SMA, for example, there's likelihood your Portfolio will cross its SMA too, thus potentially reversing toward the downtrend.



1.  The first parameter lets you choose an index that you want to look at. For example, you can type SPX here (for S&P 500 index), or RUI (for Russel 1000 index). A dropdown will appear, allowing you to select from the various indices there.



You can also put here any instrument that may benefit the strategy one way or another. But keep in mind, you can't input a delisted instrument here (indicated by a number suffix inside square brackets). Otherwise a warning will be given and you can't backtest the strategy:



2.  The second parameter defines whether the index's last closing-value must be “Above” or “Below” its SMA to decide whether you will enter or exit Positions.



3.  The third parameter defines the period that the index's SMA is calculated. For example, you want to see the 200 days SMA of the Index, input a value of 200 days here (type the value and choose from the dropdown whether Days or Months).






An SMA indicator is displayed on the Price Chart (at the Instrument Tab) once you add this filter to your strategy; just click on the little “Chart” icon next to the index symbol in this filter, and you'll see the index's value history with the SMA overlay. 



Look whether the current index value is above or below that SMA line. Any changes to the SMA period parameter will immediately change this indicator's appearance.





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