Further examination of SPYs monthly seasonal tendencies yields more precise holding pattern of SPY.
Now we are left with the question: With the current system, our money stands still 50% of the time, can we do something about that?
Sure we can, Let throw some long-term treasury bonds into the mix and see if we can enhance our system. We will buy and hold TLT in the following Months: January, May, August, September to fill in the gaps as best as we can.
Again our outcome is improved:
And now let’s take the same strategy basics and put it on steroids, replace our securities with leveraged ETFs. Instead the SPY we will Use SPXL – SPY X3 And instead of the TLT we will use TMF – TLT X3, changing the Holding periods a bit to fit the ETF’s Tendencies and Bob’s your uncle.
What we have is a simple monthly rotation strategy with 17000% gain over 9 years.
You can follow the performance of this strategy on the following strategy page