ETF Trading Strategies Designed To...
Beat Wall Street
|
More specifically, the goal is to consistently beat the benchmark S&P 500. While it can't be done every year with every strategy, these models have generated some pretty impressive numbers. For example, the total return for SPY (the ETF that mirrors the S&P 500) for the 14-year period 2008 through 2021 was 335.7%. Not bad, especially when you factor in the Great Recession and the COVID-19 crash of 2020. But the American Muscle strategy, backtested for the same 14-year period, delivered a whopping 1,490.5%. |
Reduce Risk
|
For starters, all 4 strategies are primarily ETF trading strategies. ETFs, by their very nature (baskets of assets), reduce a good portion of the risk and volatility inherent in owning individual securities. Next, recognizing that emotion is often the enemy that kills results, the strategies employ mechanisms like risk-adjusted momentum analysis and volatility based risk-parity. These mechanisms help define trends and take the emotion out of our buy and sell signals. In particular... Bond Bulls is a bond fund switching strategy; it's all bonds all the time - with a hedge of it's own to provide relief should the bond market itself take a leg down. With bonds generally offering relative security in times of market turmoil, Bond Bulls has 'reduced risk' in its DNA. A "flight-to-safety" trigger can move the portfolio into cash in the event of a significant market downturn. Global Trader employs risk-adjusted relative strength testing to identify and tap outperforming international ETFs, opening up our asset horizon to all corners of the globe. A built-in hedge helps reduce volatility and drawdown, and "flight-to-safety" is a long-duration Treasury fund. American Muscle employs diversity by rotating among select domestic index funds with individual stock holdings ranging from 100 to 2,000. In the event of a broad market downturn, the strategy can take a majority position in one of four "flight-to-safety" funds (two of which are Treasuries). The White Knuckle is my most aggressive strategy, employing leveraged index fund ETFs. While a stand-alone leveraged fund is inherently dangerous, I've picked an ETF combo that often exhibits an inverse relationship. Using risk-parity to adjust for volatility, as well as a rotating satellite hedge, I've reduced volatility and max drawdown to a more reasonable level. |
Keep It Simple
|
I send buy and sell signals to you via a monthly email newsletter. These are the same buy and sell signals that I use to trade each of the strategies in my own account. I watch the market, I keep the algorithms cranking. You check your email and stay up-to-date with strategy trades. What next? Well, you can get more information on each of the trading strategies (below), or jump straight to the COMPARE/SUBSCRIBE page to compare strategy highlights and see pricing. |
Select Your Strategy...
(Our newest model, Five Stocks, is currently in beta testing. Read about it HERE.)
|
|
|
|
|
Numbers as of 12/31/2021
CAGR = Compound Annual Growth Rate
CAGR = Compound Annual Growth Rate