This is a simple trading algorithm I discovered that operates on the Vanguard sector ETFs. This backdating algorithm provides on average a return of ~0.0878% for each trading day, or ~24.85% annualized return assuming 253 trading days per year.
This algorithm is really simple.
- On day
n, determine which ETF gave the highest return - On day
n+1:
- short sell the previous day's highest performing ETF at market open
- and close your short position at market close.
Because this algorithm operates on Vanguard's 11 Sector ETFs, it is resilient against the volatility of individual stocks.
Hindsight is 20/20 and because this is a backdating algorithm, similar results are not guaranteed in the future. Use at your own risk.