ETF Trading Strategy

swheat · Jul 11, 2005

A friend of mine claims to have found the holy grail - he uses the screening tool on etfzone.com 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?

Godwhacker · Jul 18, 2005

Quote from swheat:

A friend of mine claims to have found the holy grail - he uses the screening tool on etfzone.com 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?

I smell a rat :mad:

swheat · Jul 18, 2005

limitdown · Jul 18, 2005

Quote from swheat:

A friend of mine claims to have found the holy grail - he uses the screening tool on etfzone.com 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?

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

thanks./..??

swheat · Jul 18, 2005

I am not affiliated with them or anyone else.

MBehr · Jul 19, 2005

Does anyone else have a short term ETF strategy? I'd like some buy/sell signals based on technical analysis.

gkishot · Jul 19, 2005

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.

dbell66 · Jul 19, 2005

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?

Thanks

Spydertrader · Jul 19, 2005

Quote from dbell66:

What is an ETF?

http://www.investopedia.com/terms/e/etf.asp

- Spydertrader

swheat · Jul 19, 2005

Quote from gkishot:

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.

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?