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Subject:  Trading with Moving Averages Date:  6/15/2012  6:16 PM
Author:  trader2012 Number:  6314 of 6326

The recent ETFDB newsletter profiled “3 ETF Types For Downside Protection”.

RBS’s family of ”TrendPilot” exchange-traded notes offer investors exposure to a dynamic trading strategy applied across a variety of asset classes. Each fund tracks a rules-based index that strategically shifts allocations based on a simple historical moving average. The strategy is relatively straightforward: when an ETF’s underlying index is at or above its 100-day simple moving average, the fund goes long the underlying securities. If, however, the index closes below the simple moving average for five consecutive sessions, the ETF will shift exposure to “safer” short-term U.S. Treasuries.

China Trendpilot ETN (TCHI)
US Large Cap Trendpilot ETN (TRND)
US Mid Cap Trendpilot ETN (TRNM)
Gold Trendpilot ETN (TBAR)
NASDAQ-100 Trendpilot ETN (TNQD)
Oil Trendpilot ETN (TWTI)

The idea is attractive. An investor would own the underlying when it’s doing well, and he/she be put into cash when it isn’t. So I got to wondering how such an idea might work out if it were applied to bond funds. But,