Equal Weight vs Market Weight Trading Strategy (Trading Rules In Plain English)

The original article can be found here.

Trading rules:

The trading strategy’s trading rules are very simple:

• We calculate the past 9-month return of both ETFs and buy the best-performing one the following month.

So if for example the 9-month return of SPY is 10% and RSP 15%, we buy RSP and hold it for one month and then we rinse and repeat. We adjust the data for dividends and splits.