Stairs Trading Strategy

Discover the Stairs Trading Strategy using 200-day and 25-day moving averages on the S&P 500 Daily chart. Learn how to identify long entries with this simple, t

Published · Updated · Methodology: Technical Indicators

Part of: Moving Average Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Daily
  • Markets: S&P 500

Indicators used

  • 200-day Moving Average
  • 25-day Moving Average

Source video

Decoded from: Stairs Trading Strategy (Backtest) by Quantified Strategies — watch the original

Key timestamps:

  • 0:00 - Introduction to Stairs Trading Strategy
  • 0:12 - First rule: close above 200-day moving average
  • 0:17 - Second rule: close below 25-day moving average
  • 0:23 - Backtest results and annual return

Strategy overview

A moving average is an average of recent closes, and most strategies built on two of them wait for the fast line to cross the slow one. This entry is filed differently. The two averages on record are separated by an order of magnitude in horizon — 200 days against 25 — and the source video's chapter markers place them at 0:12 and 0:17 as two distinct closing conditions rather than as a single crossing event. Read structurally, that pairing asks price to stand on opposite sides of its two references at once: agreement with the long-horizon reading, disagreement with the short-horizon one. That is the shape of a pullback-inside-a-trend construction, not a trend-following crossover, and it is the reason the two lengths are so far apart — they are doing different jobs, not being compared to each other.

The source is Quantified Strategies, a channel organized around testing rather than instruction, and the title carries that in its parenthetical: "Stairs Trading Strategy (Backtest)". The chapter list keeps the same priority. After the two condition markers, the record's closing segment at 0:23 is given over to backtest results and an annual return — the mechanics occupy roughly ten seconds of marked runtime, and the evidence gets the final act. No figure from that segment is carried on this record, and none is reproduced here.

What the record does not carry is as informative as what it does. The daily timeframe is the only structural fact on file: no instrument, market or test period is named, no exit or stop is given a chapter of its own, and nothing in the chapter list accounts for where the "stairs" metaphor comes from beyond the introduction that announces it. No decoded rule set stands behind this entry, so what this page offers is the concept and the source video's own framing rather than a reconstruction of the system.

Topics

stairs trading strategy · moving average strategy · technical indicators · s&p 500 trading strategy · daily timeframe strategy · long only strategy · trend following strategy · pine script strategy · tradingview strategy · trading strategy

Frequently asked questions

Why would a strategy combine a 200-day and a 25-day moving average?

Averages of very different lengths usually play different roles. The long one describes the prevailing regime — whether price is broadly above or below its own history — while the short one reacts to recent movement. Pairing them lets a strategy separate the question of the broader trend from the question of what price is doing right now, which is structurally different from a crossover system where the two lines are compared against each other.

What timeframe does the Stairs Trading Strategy use?

Daily. That is the only structural fact on record for this entry — the source video's chapter list names no instrument, market or test period, so the strategy is filed as a daily-bar concept without a stated application.

Does this page publish the strategy's backtest results?

No. The source video reserves its final chapter for backtest results and an annual return, but no figure from that segment is recorded here and no performance claim is made on this page.

How should I evaluate a two-moving-average strategy like this one?

Test it on historical daily data for the instrument you actually intend to trade, since a construction built on 200- and 25-day averages behaves very differently across asset classes and volatility regimes. Strategy Decoder catalogs strategies presented in video sources so you can see how a concept is framed and sourced before deciding whether it is worth testing.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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