Golden Cross and Death Cross are very popular strategies for any Trend following Trading system. You might have heard about these terms if you have subscribed for any of the Technical analysis course or tutorial. Even if you haven’t, we would help you understand these terms and its application. In this post, we would also provide you an Excel sheet where you can backtest Golden Cross and Death Cross on any of the Stock or Index. Please read through below.
Check out our other Excel based Trading strategies here.
What is Golden Cross and Death Cross?
Golden Cross and Death Cross are important Trend reversal points on a Technical chart of a Stock or Index. Its is based on Moving Average Crossover. It is a general rule that Stock gives a Buy signal when faster moving average crosses above the slower moving average, while its gives a Sell signal when faster moving average crosses below the slower moving average. Golden Cross is indicated when 50 Days simple moving average crosses above the 200 day moving average. And Death Cross is indicated when 50 Days moving average crosses below the 200 day moving average. Either crossover is considered more significant when accompanied by high trading volume.As simple as that! It works perfectly on majority of indices and stocks in a long term.
Strategy Overview
Paramter | Value |
Preferred Timeframe | Daily |
Indicators Used | 50 Days SMA, 200 Days SMA |
Buy Condition | 50 Days SMA is above 200 Days SMA |
Short Condition | 50 Days SMA is below 200 Days SMA |
Stop Loss | No fixed stop loss, Stop and reverse when excel gives opposite signal |
Targets | No fixed target, Stop and reverse when excel gives opposite signal |
Excel Sheet
Parameter | Description | |
Worksheet Name | Golden Cross and Death Cross | |
Inputs | Stock Name (B4) | Name of the Stock or Index. Ex: NSE:NIFTY, NASDAQ:AAPL |
Quantity (B5) | Number of shares to Buy when Golden Cross or Death Cross happens | |
Initial Capital (B6) | Your initial Trading capital | |
Number of Days (B7) | Number of days to backtest this system | |
Outputs | Final Capital (E4) | Final capital after backtest period. |
Profit Points (E5) | Total points earned | |
Total Profit/Loss (E6) | Total Profit/Loss in Exact terms | |
Total Profit/Loss % (E7) | Total Profit/Loss in Percentage terms |
Screenshot
How to use this Excel Sheet
Step 1: Open the sheet from the link provided at the end of this post.
Step 2: Provide inputs in Cells B4 to B7. Make sure that you are connected to the internet.
Step 3: Wait for around 30 seconds. The sheet will update automatically depending on the inputs you provided.
Step 4: Check the outputs in Cell E4 to E7.
Step 5: Take Buy/Short position based on the signal at Position column.
Download Link
Below is the link to this sheet from Google Docs. You can edit it online. There is no need to download it in your local machine.
Golden Cross and Death Cross: Google Sheets
Hi ,
Your sheet is amazing. I think in the output columns where you are using B7 there should be B6.
Hi Manish,
Can you please explain more? Why do you think so?
Hi,
See If we input following in input
Stock Name NSE:NIFTY
Quantity 30
Initial Capital 50000
Number of Days(Atleast 500) 500
then output is
OUTPUTS
Final Capital 2967.5
Profit Points 82.25
Total Profit/Loss 2467.5
Total Profit/Loss % 493.50%
In the output we see profit of 2467.5 & Our inital capital is 50000 so final capital should be 2467.5 + 50000 =52467.5 but in the output we are getting final capital is 2467.5 + 500 = 2967.5.
Thats why I Think .
Hi,
See If we input following in input
Stock Name NSE:NIFTY
Quantity 30
Initial Capital 50000
Number of Days(Atleast 500) 500
then output is
OUTPUTS
Final Capital 2967.5
Profit Points 82.25
Total Profit/Loss 2467.5
Total Profit/Loss % 493.50%
In the output we see profit of 2467.5 & Our inital capital is 50000 so final capital should be 2467.5 + 50000 =52467.5 but in the output we are getting final capital is 2467.5 + 500 = 2967.5.
Thats why I Think .
Hi, I just downloaded the spreadsheet Golden Cross and Death Cross but it doesnt update for stocks even when connected to internet. Is there a way out?
Hi Anup,
It connects perfectly for me. There may be a lag of few minutes, can you please keep the sheet open for sometime and check if it updates.
Hey Manish, I loved your sheet and it was very helpful. I have already created my own moving average excel sheet. Can an excel sheet be made with both moving average, golden cross, and death cross together to create a even more efficient model? If so, how should i go about it?
Hi Sam,
Golden cross and Death cross are also based on Moving average. What additional MA you want to introduce in the system?
Hi can you provide me your excel sheet ? Thanks
sir, i downloaded the golden and death cross excel system. But i am not able to connect it to the net to get data uploaded.please suggest how to work with the sheet clearly.
Hi Sunil,
Thanks for reporting the issue. Can you please check once again.
sir, golden ma system is not working please check
Hi Devesh,
Sorry about that. Some extra learned people tried to make backdoor entry into the excel sheet and mess of the formula. The sheet has been corrected now.
sheet is not woking. plz update it or email me if possible.
Hi Ronak,
The same Excel sheet is shared to all the users. So if someone gives a wrong input, or multiple people are working on the Excel at the same time, then it appears to be not working. Requst you to follow the instructions to use the sheet and it should work. For now, we have corrected the inputs.
Hi When i have downloaded there is no data connection available in the sheet to refresh, can you pls check
Hi Satish,
Input Number of Days more than 500. You would definitely be able to see the data.
Hello
Would like to know if it works on the current trading day or it just shows the data of past trading day?
Hi Jay,
The moving averages are calculated based on previous day closing price.
Need more details for get in this stuff.
does it work for intraday
Hi Maddy,
Yes, its a universal concept and works on any timeframe
I don’t think the downloaded sheet works for intraday.
Hi Skand,
Yes, the strategy is designed for EOD timeframe
Can I use WPS Office Spreadsheet in place of MS Excel?
Hi Skand,
This particular system is built using Google spreadsheet. So, you can access it through your browser without a need of any additional software.
Hi Team,
We’re not able to download the files; So, could you please look in to the same.
Also, please note that. we’re getting the below mentioned error
The webpage at https://drive.google.com/file/d/10mXt0yMmdVrRTPisxak5bLEamrDcBnSk/view?usp=sharing might be temporarily down or it may have moved permanently to a new web address.
Hi Kundan,
Can you please try with the below link:
https://docs.google.com/spreadsheets/d/15uv6K87Raws29dC6udbKuTtLtgf8IpdAMCwLm2jJxkE/edit#gid=0
Hi Trading Tuitions Team,
Thanks for the reply and spreadsheets link.
Also thank you and appreciate for your support and cooperation for knowledge sharing.
Could you please confirm that, can you have an “Advanced Option Chain Analysis Live Excel Sheet”
If yes, could you “please provide” share the same with me OR please provide me the “download link”.
Request your support and cooperation in to the same, and Thanks in Advance.
Thanks & Best Regards,
Kundan Kadam