Many investors prefer to invest using passive investment strategies and “lazy” (but smart?) portfolio management. Increased knowledge, lower costs, and a rise in fund offerings (both ETFs and mutual funds) have contributed to this. Passive strategies include a popular asset allocation strategy that extensively uses various Vanguard ETFs. In this article, we review and describe…
In recent times, most investors prefer to invest using passive investment strategies with lazy portfolio management. Passive investing has “exploded” since the financial crisis in 2008/09, and part of this is due to the enormous growth of ETFs. Passive investing allows you to spend a minimum amount of time and effort and receive a satisfactory…
Momentum trading strategies are the practice of buying and selling assets according to the recent strength of price trends. Traders who use the strategy aim to buy securities that have been showing an upward price trend and short-sell securities that have been showing a downward trend. Momentum trading strategies You may be familiar with the…
The Coffeehouse Portfolio from Bill Schultheis aims to diversify investments across stocks, REITs, and bonds. The Schultheis Coffeehouse Portfolio strategy can be implemented with 9 ETFs. You do not need to pick individual stocks and bonds. Accordingly to our backtests over the past 16 years, the Schultheis Coffeehouse Portfolio has the following performance metrics: •…
The stock market has been on fire for the last decade, causing the impression that it reached an all-time high almost every day. However, this is only a perception because all-time highs are quite uncommon. Let’s make an all-time high strategy for stocks. The S&P 500 spent less than a tenth of its time at…
Below we have a few selected End-Of-Day Trading Strategies. (EOD trading strategies) Since we started writing in 2012 we have presented over 200 free trading strategies, and we present a monthly trading edge for our paying subscribers (which you also can buy individually or in bundles). We trade both ETFs and futures ourselves and we…
Why do trading strategies stop working? When do you stop trading? How can you avoid or minimize that trading strategies stop working? These are the most important aspects in trading because most trading strategies stop working – sooner or later. Many traders would hope a strategy lasts forever, but markets are not meant to be…
One often-mentioned expression in the financial markets is “risk on risk off”. What is it, and can you use it to develop a profitable risk on risk off trading strategy? A risk on risk off trading (RORO) strategy takes advantage of the shifting market sentiment that influences the performance of different asset classes. When it…
Albert Einstein is famous for saying that compounding is the eighth wonder. But is he correct? Yes, to a certain extent, he is correct. Look at the example below: [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] An example of #compounding and delayed gratification: The chart below shows $XOM and how 10 000 investment compounds with…
Is it correct that copper is a leading indicator for stocks? Can we make a copper vs. stocks strategy? No, copper is most likely not a good leading indicator for stocks. Our copper vs. stocks trading strategy might be due to luck or randomness. Traders are always looking for leading indicators that can predict the…
