Saturday, April 4, 2009

ETF Trading Strategies: Buy and Hold vs. Moving Average Week 5

Week 5 of the comparison of a Buy and Hold ETF portfolio vs. a moving average ETF trading strategy is complete and things are getting a little interesting now. Investor A (Buy and Hold) had another increase in his portfolio to a total value of $11,289.86 for a very nice gain of 12.4% in just 5 weeks. This is the fourth week in a row with an increase in value. Investor A continues to benefit 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 was basically unchanged this week and is $10,003.35. 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. If you click on the graph it will open in a bigger size making it easier to view.



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