Mutual Fund Investing |
Rules |
Notes:
Be aware of dividents that don't show in the plots
Consider diversification
Sell rule:
- Diversified:
- falls under 100 day moving av;
declines further for 20 days
- after sharp rise, falls under 50-day mov av.;
declines further for 10 days
- Ex: FAMRX, FDGRX
- Specialized:
- falls under 50 day moving av;
declines further for 10 days
- after sharp rise, falls under 25-day mov av.;
declines further for 5 days
- Ex: fid sel nat gas fsngx on ...
Buy rule: buy only when the moving average is rising
- Diversified (consider strategy + momentum)
- rises above 100 day moving av;
rises further for 20 days
- after sharp decline, rises above 50-day mov av.;
rises further for 10 days
- ex: FBIDX
- Specialized (consider value+ momentum)
- rises above 50 day moving av;
rises further for 10 days
- after sharp decline, rises above 25-day mov av.;
rises further for 5 days
- Ex: f sel insurance, sel home finance, sel food &ag, sel nat gas
Replace rule:
- Replace a fund by a similar type of fund if it has provided same or better return with lower or same volatility for 1 or two quarters.
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40 week, 200 day MA
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http://daytrading.about.com/money/daytrading/library/weekly/aa013100h.htm
As Trade Signal Generator
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Technical Analysis