Crossover Strategy

The Crossover Strategy is one of the most versatile and widely used techniques in technical analysis. It generates buy or sell signals when one line (such as price, SMA, or EMA) crosses above or below another. You can customize both the entry and exit rules with different types of crossovers, periods, and thresholds— resulting in millions of potential combinations.

On BackAlpha, you can experiment with all kinds of crossover logic: price vs. moving average, short-term vs. long-term SMA or EMA, percentage buffers, and more. Try a custom setup or explore some popular presets to see what works best.

Golden Cross & Death Cross

Golden Cross & Death Cross is a classic strategy that looks for big trend changes. A Golden Cross happens when a short-term moving average (like the 50-day SMA) rises above a long-term one (like the 200-day SMA), often seen as a sign to buy. A Death Cross is the opposite — the short-term average falls below the long-term one, signaling a time to sell. This method helps you follow major market trends while avoiding long declines.

EMA 30/50 Crossover with Threshold and Call Option Leverage

This strategy looks for faster-moving trend shifts using exponential moving averages. A buy signal occurs when the 30-day EMA rises above the 50-day EMA by at least 1% of the current stock price. A sell signal triggers when it falls below by the same margin. Instead of buying shares directly, this version uses call options to simulate 3x leverage. It allows for amplified gains—but also comes with higher risk, including losses from option time decay.

SMA 10/200 Crossover with Threshold and Call Option Leverage

This leveraged strategy combines a short-term and long-term simple moving average to identify trend reversals. A buy signal occurs when the 10-day SMA rises above the 200-day SMA by at least 0.3% of the current stock price, and a sell signal triggers when it drops below by the same margin. Instead of buying shares directly, this version uses call options to simulate 3x leverage. It allows for amplified gains—but also comes with higher risk, including losses from option time decay.

Custom EMA Crossover with Asymmetric Signals

This advanced strategy uses two distinct crossover rules for entry and exit, offering more precision and flexibility. A buy signal occurs when the 30-day EMA rises above the 70-day EMA by at least 1.0% of the stock price, capturing medium-term bullish momentum. A sell signal is triggered when the 10-day EMA falls below the 20-day EMA by at least 1.5%, allowing for a faster reaction to short-term downturns. The strategy simulates 3x leverage using call options and incorporates a simplified model of time decay—assuming a 3% annual loss in value if the stock price stays flat.