Re:Stocks Off Sharply as Market Upheaval Grows
by adt2bt on Monday August 24, 2015 @03:51PM
(#10112543)
This got me thinking - is it possible to develop a profitable long-term investment strategy that takes advantage of stock market dips?
For example, say I have $1000 to invest every month. I'll take that $1000 and put $500 into an index fund and $500 into a savings account. Then, once the market dips 10% from its previous high, all the accumulated money in the savings accounts is invested over 4 weeks.
I made a simple google doc to back-test the strategy 5 years on the DJIA. It's very rudimentary, but I'd love to see if anyone tries a different approach.
For example, say I have $1000 to invest every month. I'll take that $1000 and put $500 into an index fund and $500 into a savings account. Then, once the market dips 10% from its previous high, all the accumulated money in the savings accounts is invested over 4 weeks.
I made a simple google doc to back-test the strategy 5 years on the DJIA. It's very rudimentary, but I'd love to see if anyone tries a different approach.
https://docs.google.com/spreadsheets/d/18-2rBonJPPlg8n6YkpAj...