Rotate into strongest sector ETFs, fade weakest
Sector Rotation 3Y
| Symbol | Action | Vol | Stop Loss | Take Profit | Size | Links |
|---|---|---|---|---|---|---|
| XLK | FLAT | 26% | 20.2% below entry | 5.5% above entry | 4.7% | TVYH |
| XLF | FLAT | 18% | 13.8% below entry | 3.8% above entry | 6.9% | TVYH |
| XLE | FLAT | 23% | 17.4% below entry | 4.8% above entry | 5.5% | TVYH |
| XLV | FLAT | 15% | 11.8% below entry | 3.2% above entry | 8.1% | TVYH |
| XLI | FLAT | 18% | 13.6% below entry | 3.7% above entry | 7.0% | TVYH |
| XLP | FLAT | 13% | 9.9% below entry | 3.0% above entry | 9.6% | TVYH |
| XLU | FLAT | 16% | 12.1% below entry | 3.3% above entry | 7.9% | TVYH |
| XLRE | FLAT | 16% | 12.3% below entry | 3.4% above entry | 7.7% | TVYH |
| XLC | FLAT | 17% | 13.0% below entry | 3.6% above entry | 7.3% | TVYH |
| XLB | FLAT | 18% | 14.1% below entry | 3.8% above entry | 6.8% | TVYH |
This strategy has moderate long-term potential but requires more active monitoring than a pure passive approach. Entry: Wait for a pullback before entering. Buy in 3 tranches over 2-4 weeks to average your entry price. Rebalance: Check monthly. This strategy is more volatile and needs closer attention. Exit rules: - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from -20% drawdown to return 53% over the long term. Stopping out would have locked in losses. - Exit rule: Exit individual ETFs only if they close or change methodology. The rotation framework, not individual ETFs, is the strategy.