Relative Strength ETF Strategies for April
Scott's Investments submits:I previously detailed here and here how an investor can use ETF Replay to screen for best performing ETFs based on momentum and volatility. I originally created a portfolio of 22 ETFs and then expanded it to 25 ETFs, which I believe represent a diverse basket.
The buy/sell strategy for the portfolio is simple: purchase the top ETFs based on a combination of their 6 month returns, 3 month returns, and 3 month volatility (lower volatility receives a higher ranking). I also track the performance of a strategy that combines the average of the 3 month return, 20 day return, and 20 day volatility. I refer to these two different sets as "6/3/3" and "3/20/20." For some back tests on these strategies please see my previous posts or August's list.
The strategy is to buy the top 2 ranked ETFs in the 6/3/3 and 3/20/20 screen. If there are duplicatesComplete Story »