ETF Trading Strategy

Discussion in 'ETFs' started by swheat, Jul 11, 2005.

  1. swheat


    A friend of mine claims to have found the holy grail - he uses the screening tool on and sorts all the funds by their one year return. He buys the three/six worst performing funds (based on one year return) that also have a three month return that is positive.
    He holds till he makes about 10% then sells. He does not hold any position longer than 90 days.
    Any else ever tried this?
  2. I smell a rat :mad:
  3. swheat


  4. nice way to let everyone know about this website (advertisement)

  5. swheat


    I am not affiliated with them or anyone else.
  6. MBehr


    Does anyone else have a short term ETF strategy? I'd like some buy/sell signals based on technical analysis.
  7. I don't know if your friend found the holy grail or not but this strategy might work in a bull market which is to some extent ensured by the funds positive returns for the last 3 months. In general this strategy is not bad & in my mind it should be profitable. Now your friend should start his own newsletters subscription.
  8. dbell66


    I know i'm going to sound incredibly thick for asking this, but,

    what is an ETF?

    Are they the same as closed end funds?
    Do they trade at +/- NAV etc?

  9. swheat


    Yeah it is pretty much like a sector rotation / relative strength stragegy.
    Anyone care to share their experience with buying long term underperformers vs. high flyers?
    #10     Jul 19, 2005