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Faber's Sector Rotation Trading Strategy
ChartSchool describes a strategy, Faber's Sector Rotation Trading Strategy, to select the best sectors on given timeframes be it 1 month, 3 months, 6 months …. My question becomes, assuming the strategy works for selecting a sector would the same, or similar, strategy work for picking industries within the sectors followed by stocks within the industries. My approach would be something like, for the first 3 months pick 3 stocks each month until I have 9 stocks. In the 4th month and each month thereafter pick 3 new stocks to replace the 3 oldest stocks.
Seems simple enough using performance with the three-month Rate-of-Change as the selection method along with some other metrics suggested by the article.
Anyone tried this or something similar and if so, was it successful?