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The GIM2 crowd may be tired of hearing about my Monthly Retirement Slow-Trade system. But since we are on a new (to us) platform, I will explain it a little.
It is designed to accommodate the limitations of certain retirement accounts. For example my retirement accounts have restrictions against frequent trading. If you move out of an equity fund, they do not let you move back into that equity fund for 30 (and sometimes 60) days. So this can't be a short term trading system.
To meet that requirement I use a monthly chart of the S&P 500. I feel like I made this up, but I think I must have heard about it somewhere, and I subsequently went and researched and it really is "a thing."
The thing is the following. At the close of each month: When the monthly price closes the month above the 20 month moving average, you move to stock funds. When the monthly price closes the month below the 20 month moving average, you move back to cash.
It sounds too simple, but historically it has done very well. I'll prove that later.
Some people ride the market all the way back down when the bear comes. I can't do that and sleep at night. So this system is designed to let me participate in the SM without pulling my hair out.
It is specifically designed to avoid big bear moves like starting about 2000 and also 2008. Those "pullback" (LOL) are show here:
It is designed to accommodate the limitations of certain retirement accounts. For example my retirement accounts have restrictions against frequent trading. If you move out of an equity fund, they do not let you move back into that equity fund for 30 (and sometimes 60) days. So this can't be a short term trading system.
To meet that requirement I use a monthly chart of the S&P 500. I feel like I made this up, but I think I must have heard about it somewhere, and I subsequently went and researched and it really is "a thing."
The thing is the following. At the close of each month: When the monthly price closes the month above the 20 month moving average, you move to stock funds. When the monthly price closes the month below the 20 month moving average, you move back to cash.
It sounds too simple, but historically it has done very well. I'll prove that later.
Some people ride the market all the way back down when the bear comes. I can't do that and sleep at night. So this system is designed to let me participate in the SM without pulling my hair out.
It is specifically designed to avoid big bear moves like starting about 2000 and also 2008. Those "pullback" (LOL) are show here:
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