There is no right method or system that is correct for everyone. We all have different goals, financial conditions, risk tolerances, and trading psyche’s to account for, while attempting to find the plan (strategy) that works best for each of us as an individual. The Prudent Trader’s work on methods and systems is an attempt to expose members to differing philosophies allowing you to choose the one or two that is appropriate for you. What is the best strategy for you?
The purpose of this new section of the Prudent Trader is to present a relative strength model as applied to Exchange Traded Funds (ETF). Research on this subject has been presented and back tested from 1926. To access this research “Click Here“.
The relative strength portfolios outperform the buy and hold benchmark in approximately 70% of all years and returns are persistent across time. The relative strength model is then tested across a portfolio of global asset class ETF’s.
What we are presenting is not an original and unique method for investing. Similar systems and techniques have been utilized for decades. The focus in this section is on the practitioner with real world applicability.
The particulars, ETF’s, asset classes, and potential portfolios are kept in a Google Spreadsheet along with the rules and model portolios.
While many have their 401Ks with Fidelity, many of the Select funds may not be available in your plan. If however you’ve an I.R.A. with Fidelity these funds are included.
- Rotational Trading – This section is in the process of a complete revamp for many reasons. Studies have been on going for months with results appearing in the Trading Notes. When the revamp is completed, the new will be posted. Thanks for your understanding and patience!
- Fidelity Select – Current Rankings and back tests from 1985!
Initial Investment 100K. Dividends, Interest, transaction costs are not considered. CAGR = Compound annual Growth Rate.
Buying top 2 Funds: