Chapter 10. Investing Strategy 3: Multi-Asset Trending Strategy
Using a trend-following method to improve investment returns and reduce risk
The last of the three Idle Investor strategies is the Multi-Asset Trending Strategy. It employs a trend-following investing strategy, using simple moving average-based signals once per month to determine whether to hold higher-risk, higher-return shares via a variety of share ETFs for the following month, or instead to hold a selection of government bond ETFs for the following month. The key investing principle employed here can be neatly encapsulated by the catchphrase: the trend is your friend.