Quote:
Originally Posted by gowgow
...(snip)...
Maybe the above mentioned strategy isn't for you (And when say you, I mean any reader, not just Lsbcal), but I'm genuinely curious about what other strategies people are using that they have found to work well. I'm here to learn.
|
I'm respectful of such a strategy (also of buy-hold). But note it depends a lot on the individual and their willingness to follow things day to day. As we know, many investors will start out with a strategy and then start to second guess it. Many whipsaws might cause one to try something else.
I've actually done a lot of spreadsheet studies on such mechanical strategies. I've examined them going back to the 1920's with actual and synthesized data. I personally use a much more gradual monthly technique which is easier for me to implement and backtests to 1 trade every 3 years (round trip every 6 years on average). It is not a moving average type but does include a momentum component. Just mentioning it as a way to say that there are a few mad investors out there that actually think along these lines but don't disclose details.
The Bogleheads site has tons of info on buy-hold strategies and those twiddles that are referred to as rebalancing. There was also a huge thread on moving average strategies and discussions. I think that was back in 2009.
There is an interesting book that might be in your library:
Amazon.com: The Physics of Wall Street: A Brief History of Predicting the Unpredictable eBook: James Owen Weatherall: Books