Dynamic Momentum Ranking System(s) – Update

by Monty Pelerin
Monty Pelerin’s World

Another month has nearly passed and progress on the Dynamic Momentum Ranking System (DMR) continues. A new ETF security will be chosen at the end of next week’s trading. All selections are made on Fridays prior to the first Monday of the next month. Were this to be a trading day, EWJ, the Japanese Index Fund, ranks highest. This ranking is based on a Normal trading style (TN1), discussed below.

The ranking of EWJ is meaningless as far as backtest results. Whichever ETF is ranked highest at the end of trading next Friday will be incorporated into testing results. While there should be nothing magical about a selection today versus a selection a week from now, backtesting ignores all but those that occur on trading days.

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