Saturday, April 25, 2009

ETF Trading Strategies: Buy and Hold vs. Moving Average Week 8

Week 8 of the comparison of a Buy and Hold ETF portfolio vs. a moving average ETF trading strategy is complete and Investor A (Buy and Hold) continues to dominate this experiment (although it is very early). Investor A had another increase in his portfolio to a total value of $11,744.38 for a gain of 16.9% in only 8 weeks. This is the seventh week in a row with an increase in value. Investor A continues to benefit from this recent market rally.

Investor B (50 day moving average/200 day moving average ETF trading) is only holding three of the 10 ETFs from the balanced portfolio. His total portfolio had a small gain of about $13 and is $10,018.65. His performance thus stands at -.3%. He is waiting for the 50 day moving average to cross above the 200 day moving average on the other 7 ETFs before buying. The graphical representation is below.

Feel free to sign up for the free ETF Newsletter and I’ll send you weekly updates of the progress between Investor’s A and B.

If you click on the graph it will open in a bigger size making it easier to view.

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