The Easiest Automated “Strategy”

June 17, 2024

The problem with systems is: they’re complicated.

Setting up an Fx account on a VPS while trying to decipher different time zones with different brokers and ever-changing margin is a hassle at best.

And, unfortunately, setting up a Futures account is fairly hard, too. You’d have to download Tradestation or Multicharts, copy the code, past the code into EasyLanguage, Verify it, open a new chart with the correct Futures contract, and turn on the strategy. Then make sure the power is always on.

While automated strategies can be way more profitable than passive investing, never underestimate the intimidating obstacle of too many steps.

Remember, the hardest weight to lift at the gym is the front door.

So, this week let’s make it as easy as possible.

While this is not a “strategy” as I like to think of strategies, it is one nonetheless. And it’s incredibly easy.

Plus, it’s exactly what the index funders love and it’s something anyone can do starting today.

The Dollar Cost Averaging (DCA) SCHD & SCHG Strategy

• Start with: $1,000
• Add automatically via automatic transfers: $100 per week (or $400 per month)
• That’s it

Why will this work?

The #1 reason is not because the market always goes up. It doesn’t always go up.

This will work because of us. If we’re constantly adding money to an account, that account will have more money over time.

The only question is: will our money make money?

The index funders say we’re guaranteed to make money. So we have that going for us. Which is nice. 

It’s the simplest way to make money in the world.

Right?

Let’s take a look.

If we contributed $500 each to SCHD and SCHG at the start and then added the same amount of money to both at the end of each month or week (for a total of $400 per month), here’s what would have happened from January 2020 to June 2024:

Not bad!

We started with a measly $1,000 and now we’d have over $33,000. Granted, most of that gain is our own money being put into the account constantly, but we only would’ve put in about $20,000. The rest was the strategy making money for us.

Looking at those figures, the MWRR (Money-Weighted Rate of Return) shows our money made about 14% per year.

That’s about as close as we can get to a surefire win.

And it’s about as simple a strategy as we can find.

Is there any downside?

We’ll take a look at that in the next Newsletter.

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.