Value Vs. Growth Trading Strategy (Trading Rules – No Code)

The original article:

Value Vs. Growth Trading Strategy: Evaluating the Best Approach through Backtesting and Performance Analysis

Trading rules in plain English:

For the rotation system, we are going to use the IUSV (value) and IUSG (growth) ETFs.

Firstly, we are going to calculate the ratio between these two ETFs by simply dividing IUSV by IUSG. Then, we calculate the ratio’s 10-week (fast) and 40-week (slow) moving averages. Once we have that, the strategy is pretty simple. The trading rules read like this:

• We buy value (IUSV) when the fast-moving average crosses over the slow-moving average of the ratio.
• We switch to growth (IUSG) when the fast-moving average crosses under the slow-moving average of the ratio.

PS! This is a weekly trading strategy and system, and thus we use weekly bars.