ETF Portfolio Management Guidelines and Trading Rules
Using Chaikin Analytics ETF Relative Strength Buy Signals
Goal: Outperform the Market with Less Risk Trading Liquid ETF's That Demonstrate Persistent Strength on Chaikin Analytics
Personal Goal: I booked a cruise vacation for my family this coming November. With travel, tips, incidentals and the fare, I need about $4.000 to pay for the vacation. This strategy is dedicated to my vacation fund!
Strategy: Buy and Hold a Diversified Portfolio of ETF's Using Chaikin Analytics Relative Strength Buy, Breakout and Sell Signals
Watch Lists:
Portfolio Risk Management
Over the Next Several Months, We'll Flesh Out Market Conditions Rules, Bearish Hedges, Taking Positions in Cash, Etc. I Will Trade This Portfolio in a Paper Money Account So We Can Foreward Test and Learn Along the Way. My Real Money Won't Be At Stake During This Test.
Personal Goal: I booked a cruise vacation for my family this coming November. With travel, tips, incidentals and the fare, I need about $4.000 to pay for the vacation. This strategy is dedicated to my vacation fund!
Strategy: Buy and Hold a Diversified Portfolio of ETF's Using Chaikin Analytics Relative Strength Buy, Breakout and Sell Signals
Watch Lists:
- TD Ameritrade Commission Free ETF's
- Penny Increment Option ETF's
- Chaikin Top 100 ETF Watchlist
- Liquid Inverse ETF's
- Enter Positions on Relative Strength Buy Signal or
- Enter on Relative Strength Breakout Buy Signal
- Trading Signals Reviewed Here
- Consider Augmenting Trading Signals with These Additional Parameters: Money Flow and the OB/OS Oscillator
- Use Relative Strength Sell and Breakdown Signals to Exit Bullish Holdings or to Establish Short (Hedging) Trades
- Initiate Bullish Trades IFF (if and only if) ETF Price is Above a Rising Chaikin Trendline
- Favor Signals That Coincide Positive Chaikin Money Flow
- Set Stop Loss 1% Below Lower Volatility Band. Move Stops Once a Week. Never moves stops down.
- Plan Your Trade So That No More Than 1-2% of Total Portfolio Is Lost if Stop-Loss is Hit.
- Moving Up Stops and Position Sizing So That Your Portfolio Takes a Small Loss In the Event a Trade Moves Against You Is the Key to Your Trading Career.
Portfolio Risk Management
- Trade A Diversified Portfolio of 10 - 15 ETF's.
- Allocate 60% to US Equity ETF's, 10-30% to International Equity ETF's ]and as much as 30% to Commodity, Bond, Inverse or Real Estate ETF's, While limiting portfolio exposure In any one of those areas to no more than 10%. Portfolio Strategies Are Unique to Each Individual and Allocations Should Be Considered Carefully Based On Financial Goals, Investing Time Horizon and Risk Tolerance.
- When the Market is Bullish, 70%-100% of Portfolio Positions Should Be Bullish.
- When the Market is Neutral, 40%f to 60% of the Portfolio Positions Should Be Bullish. Use Cash and Bearish Hedges for the Rest.
- When the Market is Bearish, 60%-70% of Portfolio Positions Can Be Bearish or In Cash. Limit Hedges to No More Than 30%. The Market Has a Long Term Bias to the Upside.
Over the Next Several Months, We'll Flesh Out Market Conditions Rules, Bearish Hedges, Taking Positions in Cash, Etc. I Will Trade This Portfolio in a Paper Money Account So We Can Foreward Test and Learn Along the Way. My Real Money Won't Be At Stake During This Test.