Testing the “Trade the Trend” Strategy with Sector SPDR ETFs
I’m embarking on a journey to test a long-term investment strategy using SPDR Select ETFs. The strategy involves ranking ETFs based on their performance in the previous month and then investing in them according to their weight ratio by grand total. By applying the weight ratio by grand total, I aim to allocate funds in a way that reflects each ETF’s significance within the entire portfolio. Each month, I’ll invest a fixed amount – 1,000 in this case – into my Demo account with Interactive Brokers. The percentage allocation will be recalculated monthly based on the latest performance rankings.