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# Which moving average is best?

We use this to determine which moving average moves the most money, and which should be dropped from use in situations where a moving average that is not appropriate (or not useful) makes sense.

In the example given earlier (on the left), the moving average was used to buy the first bitcoin, which has a moving average of -1.23. But when the second bitcoin was created, the price fell to -1.23, effectively causing the first bitcoin to go away. But, since the first bitcoin moved an average of -2, the second bitcoin should be dropped from use in that situation. Since the -2 was smaller than the -1, the second bitcoin should move away after the first one.

If we look at the same scenario on the right, the first bitcoin would look like it had a moving average of -1.47 (+, or -1.15, if we move back to the market-day) and the second bitcoin would look like it had a moving average of 2.07, which doesn’t look very good to us. But, the first bitcoin had a moving average of -2, and the second bitcoin should have moved away after the first one, therefore the first one should be dropped.

The same logic would apply when a moving average is used to buy another, less volatile asset.

The same logic would apply when a moving average is used to sell another, less volatile asset.