IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v33y2026i6p787-790.html

Optimizing the moving average trade rule for cryptocurrencies: implications of band size and transaction costs

Author

Listed:
  • Daniel Svogun
  • Valentinas Rudys

Abstract

In this paper, we apply an adjustable-band moving average algorithm to study technical analysis profitability in cryptocurrency markets. We find three main results. First, adjustable band trade rules act like a leveraged bet: they outperform fixed band rules in years when technical analysis is profitable and under-perform in other years. Second, our algorithm suggests significantly higher than standard 0% and 1% optimal band parameter values. Third, by comparing adjustable band rules with higher fixed band rules, we show that adjustable band rules have value beyond finding high optimal bands. Technical traders should consider higher and adjustable-band rules, especially with above-zero transaction costs.

Suggested Citation

  • Daniel Svogun & Valentinas Rudys, 2026. "Optimizing the moving average trade rule for cryptocurrencies: implications of band size and transaction costs," Applied Economics Letters, Taylor & Francis Journals, vol. 33(6), pages 787-790, March.
    • Handle: RePEc:taf:apeclt:v:33:y:2026:i:6:p:787-790
    DOI: 10.1080/13504851.2024.2394211
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2024.2394211
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2024.2394211?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:33:y:2026:i:6:p:787-790. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.