Many traders are pair trading ETFs. Pairs trading is one method of making your strategy less exposed to market fluctuations. Most traders trade stocks, but you can, of course, also trade ETFs. If you are trading ETFs you indirectly have a wide diversification, albeit to different segments of the stock market. In this article, we…
Market Neutral Momentum Trading Strategy Over the last weeks I have written three articles about monthly momentum in TLT, SPY, and EEM: Monthly momentum in SPY, TLT, and EEM. Monthly momentum in SPY and TLT. Monthly momentum in SPY and EEM. The first two strategies seem to perform reasonably well. Many investors seek to minimize…
There are many ways to utilize monthly momentum in SPY and EEM: I have over the last week written two articles about momentum: The third looks at rotating between the two most popular stock ETFs: SPY and EEM. The assumptions are like this: Pretty simple, and the equity curve looks like this: The strategy outperforms…
This article presents an ETF rotation strategy. Sector rotation is popular and this is not without merit. The idea is to be in the sector that shows the best recent momentum. Today we present an ETF momentum rotation trading strategy based on monthly data in EEM, SPY, and TLT. In this short article, we give…
