Hey everyone!

We're back with another episode of Idea Streams and this week we're adding a bit of a twist to a standard EMA crossover strategy. You can check out the video here - https://youtu.be/QwZWcrIiY1s.

Using two exponential moving average indicators from the WOOD ETF prices we create trading signals to buy and sell XHB - the S&P Homebuilders Index. This is based off the hypothesis that the performance of timber manufacturers could be a precursor to the performance of homebuilders as they are higher up the supply chain.

The backtest is attached along with the code below.

Happy coding and let us know if you have any ideas for future episodes!