Designing and Developing a Simple Trading System – Part 2

              
Ok, let’s go back to our S&P 500 in-sample and see if our earlier SMA (5) crossover SMA (10) strategy works on it. At the moment, we will begin our step 5 which is to start programming the strategy in MS Excel together with the buy and sell signal.

The raw S&P 500 index futures daily back-adjusted continuous data would look like below:

The first thing we add is the SMA (5) column. Click on cell J7 then type in =AVERAGE($F3:$F7)

Then fill the rest of the cells below with the formula by click-and-drag the bottom right corner of cell J7. There you go; you have created your 1st calculation on Simple Moving Average on Excel. It is that easy.

Repeat the similar process this time on cell K12 with this formula =AVERAGE($F3:$F12) and you have a SMA (10). The screen should look like this:

Now we have a S&P 500 index futures historical data (in-sample) spreadsheet with SMA (5) and SMA (10) indicator already. Isn’t that easy? I will show you, especially for anonymous who ask in the comment section in my previous article, how to program the buy and sell signal into this spreadsheet on my next article.  You won't believe how easy it is.