Momentum ETF-Rotating Trading Strategy – Historical Performance
This is a rule-based strategy that invests in large EFTs with strong trend and momentum. Rotational trading and investing strategy.
1. The portfolio is updated at the beginning of each month. Some ETFs are replaced, and some will be kept the same. There is around 20 trades/replacement each year. (See below screenshot)
2. The Drawdowns for this strategy are a lot lower than the strong SPY. The Drawdown during the financial crisis was around 15% compared to SPY >50%. (See below screenshot)
3. The return is slightly higher than SPY during longer time spans. (See below screenshot)