Of course, you won’t know what you want until you try a few strategies! I settled for a more long-term approach. Aside from your standard, low-cost S&P 500 ETFs, I focus heavily on Technology Stocks, large-cap or more.
The paradox is real. Most investors optimize for feeling smart rather than generating returns. A systematic approach solves this. The system makes the decision. You just execute. Ego exits the trade.
Hi, I'm veey interested in your strategy and subscribing.
Only thing that jumps out is on trading the 1st of every month. World events and markets can change so much from month to month I'm afraid I would be left in the market during a severe correction until next month recommendation.
Have you backtested your program to review and recommend etfs every 2 weeks instead of only once per month?
Hi, thanks for the comment! I see the strategy as an optimized version of buy-and-hold indexing. It reacts to long trends and ignores short-term movements and whipsaws.
I haven't tested a 2 week rebalancing interval, as I wanted to keep things simple and low-cost. It could be interesting, but my assumption is it would cause more trades and more switching back and forth between the ETFs.
The problem with most momentum systems is they exit the market too soon, and then miss the rebound. That's what happens during V-shaped recoveries like the COVID crash in 2020. My strategy didn't exit the market then, and therefore it didn't miss the rebound.
You can find the historical returns of the monthly strategy here to get an idea of how bad the drawdowns have been:
Good read! I spent my fair share of time fighting the markets too before switching strategies. Expensive lessons 😬
Thank you Frank! Which strategy did you end up with? I guess we all have to try out a variety of strategies before we settle on one that works 😊
Of course, you won’t know what you want until you try a few strategies! I settled for a more long-term approach. Aside from your standard, low-cost S&P 500 ETFs, I focus heavily on Technology Stocks, large-cap or more.
The paradox is real. Most investors optimize for feeling smart rather than generating returns. A systematic approach solves this. The system makes the decision. You just execute. Ego exits the trade.
Exactly 👍 Optimizing for returns rather than ego is a crucial step to succeed.
Most people lose because they’re playing the wrong game. Find a strategy that actually fits you and your life
Hi, I'm veey interested in your strategy and subscribing.
Only thing that jumps out is on trading the 1st of every month. World events and markets can change so much from month to month I'm afraid I would be left in the market during a severe correction until next month recommendation.
Have you backtested your program to review and recommend etfs every 2 weeks instead of only once per month?
Thanks
Hi, thanks for the comment! I see the strategy as an optimized version of buy-and-hold indexing. It reacts to long trends and ignores short-term movements and whipsaws.
I haven't tested a 2 week rebalancing interval, as I wanted to keep things simple and low-cost. It could be interesting, but my assumption is it would cause more trades and more switching back and forth between the ETFs.
The problem with most momentum systems is they exit the market too soon, and then miss the rebound. That's what happens during V-shaped recoveries like the COVID crash in 2020. My strategy didn't exit the market then, and therefore it didn't miss the rebound.
You can find the historical returns of the monthly strategy here to get an idea of how bad the drawdowns have been:
https://www.marketfighter.com/p/my-investment-approach-that-outperformed
Most investors don’t lose because they choose the wrong strategy…
they lose because they can’t stop interfering with a good one.