We use this ETF strategy but not as a buy and hold but with the buy and sell with the trend. We sometimes only use 2 of the sectors and will trade emerging markets ETFs as per the relative strength rankings on Mr. Colby’s site. Also see our technical analysis and Trend for overall market timing. An Alternative is the Ivy Portfolio
Read – #1 — Gives you several strategies to use. His top is there’s always a bullmarket somewhere. Highest 12 month trailing price performance. Uses the top 3 ETF’s and checks them monthly to rotate them if needed. He stays in the market all the time. Our opinion is to use this strategy but to trade with market trend and use relative strength. He says to use te Rydex equal weighted ETFs. But most of these have low volume, so far I haven’t use them as I look at Mr. Colby’s current top ETF’s and use many of those — Preferring Vanguard as that is where the majority of our accounts are. Colby or ETFReplay ETFScreen
1. DETERMINE RISK ,TRADING STYLE & PORTFOLIO VOLATILITY TOLERANCE LEVELS
Establish in advance your tolerance for portfolio risk and volatility. There several online quizzes to take to find out where you rank for your level of risk.
2. DETERMINE TACTICAL ASSET ALLOCATION
See asset allocation and here
3. CHOOSE AN ETF STRATEGY & EDUCATE YOURSELF
4. CONSTRUCT A DIVERSIFIED PORTFOLIO
Following your Asset Allocation
5. MONITOR MONTHLY AND RE-BALANCE WHEN NECESSARY
- ETF Performance Links:Top 10 ETF RSI how to – Top 10 ETF RankingIndustry RSI - How to Tips The best results come from threshold settings of 20 and 80 with 16 day look back for buys and 14 day look back for sales. Review and pick your own settings.