Roundup: FundzTrader Sector Rotation Strategy
This is a roundup of our four recent posts re: FundzTrader’s simple sector rotation strategy for trading Fidelity Select funds.
>> Test of FundzTrader Strategy
Test of original strategy based on buying the sector exhibiting the greatest price change over the previous 25-days.
>> Tweaking the Strategy (Part 1)
Added trend-following filter and changed fund selection from being based purely on price to being based on price relative to volatility.
>> Tweaking the Strategy (Part 2)
Changed the trend-following filter from a “light switch” to a “dimmer”, removed the gold sector as a potential fund choice, and required positive price change to initiate a position.
>> Tweaking the Strategy (Part 3)
Changed from a single sector strategy to a multi-sector portfolio, and summarized rules for the final modified strategy.
Happy Trading,
ms
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Filed under: Stock Market Sectors, Trading Strategies | 1 Comment
Micheal, have you considered a lagged momentum period? This article describes a paper that says that the momentum (% gain) over the course of the 12 to 7 past months, i.e., a six month testing period, lagged 6 months from the current date, significantly outperforms.
http://www.cxoadvisory.com/momentum-investing/isolating-the-decisive-momentum-echo/
-Mark