Exploring Relative Strength Systems with These 11 ETFs
Tuesday, October 20th, 2009Jeff Pietsch submits:
With markets roaring back and the SPY having broken $110 for the first time in over a year just moments ago, it seems that Relative Strength Rotation methods have come back into vogue.
There are literally dozens of ways to define relative strength, and it is important to recognize that different computations will serially and stably outperform their peers during various behavioral epochs. Furthermore, inflection points can be harsh using this method. Various smoothing methods, use of multiple time frame references, and standard money management techniques can be a big help with that. All in all, it’s a hard strategy to beat over time for those interested in always being invested.
