Saturday, March 28, 2009

ETF Trading Strategies: Buy and Hold vs. Moving Average Week 4

Week 4 of the comparison of a Buy and Hold ETF portfolio vs. a moving average ETF trading strategy is complete. Investor A (Buy and Hold) had an increase in his portfolio to a total value of $10,746.22 for a nice gain of 7.0%. This is the third week in a row with an increase in value. Investor A is certainly benefiting from the recent market rally.

Investor B (50 day moving average/200 day moving average ETF trading) is only holding two of the 10 ETFs from the balanced portfolio. His total portfolio is now at $10,005.20 and his performance thus far is -.4%. He is waiting for the 50 day moving average to cross above the 200 day moving average on the other 8 ETFs before buying. The graphical representation is below.



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