I have started ETF Strategy from mid August in the Indian Stock Market. The strategy is simple, buying one type of ETF from a group of ETFs everyday and sell when it is 6% up. Now this 6% can be up from any day in the period of 30 days to 90 days.
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What is the Strategy
The strategy is simple. Have a amount say for example $500. Divide it by 50, that means you get around $10 which you will invest everyday. Now you search for a ETF whose 20% moving average is the lowest. Buy that ETF with that $10. Now next day buy different ETF with the same amount. If there is no ETF to buy, check if the ETF which you have in your portfolio fall by more than 2.5% then buy that again.
Now when you get the 6% profit of any of the ETF then sell that ETF. In this way you not only buying the ETFs but also booking the profit. Yes the ETF can give you the profit little less but that will also safeguard your profit.
So from the last 3.5 months I have been buying and selling the ETF. Since Indian Market is at All Time High and that means my profit is also increasing day by day. As of today I got the total profit of Rs 4K and after deduction the profit is Rs 3.3K. And the annualized returns is around 12%.
To be honest, I am getting some profit now and some of the ETF are getting sold above 8% because of the profit it is generating every day. I really liked this strategy which is to be honest very less risky. When the next bear market runs, I will surely move more funds to this strategy so that I end up having more profit.
This strategy is actually hold good for people who is looking to generate monthly returns on the capital. Some months you will not get profit whereas some months you will get quite a good profit like in November I got around 2.44% profit on the amount invested whereas in December till now I have got around 1.89% of the amount invested. And since the bull market will continue I will eventually be able to book more profit.
