This deserves its own thread, IMO. Doing a quick search, I did find an old thread entitled "200-day moving average market timing."EnjoyIt wrote: ↑Thu Oct 01, 2020 4:35 amI think I’m starting to understand. So how off or downward does the 200 day moving average need to be for you to get out of a sector? Same question but in the other direction. How high does the 200 day moving average need to be before you jump into a sector? Is this any sector or are you being specific to just a handful?rockstar wrote: ↑Wed Sep 30, 2020 6:46 pm The best printed example of my approach is the interview with Paul Tudor Jones in the book Money Master the Game (chapter 6.5). Let me try to summarize. You see a chart with the line going up. You are then asked the following question: How many of you want to be long and stay long on this chart? He also says: you always want to be with whatever the predominate trend is. And he also says: my metric for everything I look at is the 200 day moving average of closing prices. If you use the 200 day moving average rule, then you get out. Basically, check out that interview in the book. It's pretty much my investing style that I have landed on, and it works for me.
"Don't Use the 200-Day Moving Average as a Sell Signal" - Ben Carlson
As well as,
SourceTony then asked Paul, “Since asset allocation is so important, let me ask you: If you couldn’t pass on any of your money to your kids, but only a specific portfolio and a set of principles to guide them, what would it be?”
Paul answered, “I get very nervous about the retail investor, the average investor, because it’s really, really hard. If this was easy, if there was one formula, one way to do it, we’d all be zillionaires. One principle for sure would get out of anything that falls below the 200-day moving average.”