Strategy A classic buy and hold strategy recommended for passive portfolios. The ETFs SPY and TLT were used to gain the equity and fixed income exposures respectively. This classic buy and hold strategy has worked well in the past given the tendency for these two asset classes to have negative correlation (except during major market…
Builds on top of the simple 200 day moving average concept, but uses a short window to determine whether there is positive momentum in the market. The optimized short window was a 20 day simple moving average.
Calculate a simple 200 day moving average using the closing prices of the ETF SPY. If the current price SPY is above the 200 SMA, I will long the security, otherwise, move to cash. This is a simple momentum strategy, but powerful in that it almost completely avoids the 2008 Financial Crisis.