SMA trend following on Xumbo

How this analysis works

This page applies the SMA trend following rule to Xumbo. On every trading day the rule compares the level of the underlying index with its moving average: while the index is above it, the version is invested in the leveraged ETF; when it falls below, the version moves to cash and waits for the next signal.

The chart shows the signal and the price history of Xumbo. The tabs set the rule against buying and holding the leveraged ETF and against the unleveraged index; length, buffer and price basis of the version are listed in the line below the title.

All figures are backtests on historical data. They describe the past and are neither a forecast nor a recommendation.

How the rule is built and where it falls short is covered by the SMA trend following explainer. Why length and buffer are set this way is explained in the Parameters chapter; costs and metrics of the ETF are on the Xumbo product page.