At the end of the month one or several positions had stopped out. You tell us to sell and rebalance (Rule 10). If the rebalance does not significantly improve the overall risk, does it make sense to actually rebalance at the end of the month? Fee charges may be concern, particularly on small portfolios.
Yes, you are correct in questioning this. Keep in mind that our study is academic in nature. If you're looking at just a few shares here or there, you should definitely take costs into account and that includes potential taxes. As an individual investor, it is always your choice as to when you make the changes. Thank you Joe.
How do I set up this strategy thru TradeStops? Is there a monthly or annual charge to
set this strategy up thru TradeStops?
My brokerage is with Fidelity. Once I set up this strategy thru Tradestops, would I then buy my positions at Fidelity?
You can set up a "Watch" portfolio and manage it from this portfolio. You will place the trades with your brokerage firm. There is no charge to do this, but you will have to watch the signals and do the necessary rebalancing through your TradeStops account. Thank you.
Will you be updating the strategy to take into account the new real estate sector (XLRE)? It's easy just to add this to the nine ETFs, but for instance does the seven now become eight in the strategy steps?
Roy, it will be quite a while before we can include XLRE into the mix. It has been trading for such a short period of time, we can't even get SSI signals yet. And there's no backtesting that can be done either. For now, and probably for several years, we'll keep with the 9 ETFs and the 7 out of 9 requirement. Thank you.
have you tested this with leveraged ETFs?
If I want to add additional capital to the fund on a monthly basis, what approach would you recommend I take?
If 7+ ETFs with SSI Entry signals -- add additional capital and rebalance portfolio across all active ETFs?
If <7 ETFs -- add additional capital to the active ETFs? or Not?
If you are initiating this strategy as 7 of the 9 are flashing green, do you still invest in a risk rebalanced 9 sectors or just the 7 with entry signals