Trading ETF's

In addition to stocks I will test my strategy on ETF's this year.

I just finished my "backtest" on the QQQQ for last year on daily, weekly & monthly "trading".

• Gain on my weekly strategy: 24,4% (before comissions etc.)
  
• Gain on my daily strategy: 32,6% (before comissions etc.)
• no trade on my monthly strategy

So that looks pretty fine in comparison to the result of an buy and hold strategy on the QQQQ's for last year....

Nevertheless the expected gains are lower than in stock trading but the risk is also much lower (in terms of initial stops, possible losses and overnight risk (i.e. bad or good announcements by companies))

In addition I will track the following ETF's (only on weekly & monthly basis):

• SPDRs (SPY)
• iShares Russell 2000 Index (IWM)
• MidCap SPDRs (MDY)
• ML SEMICOND HLDR1240 (SMH)
• Energy Select Sector SPDR (XLE)
• OIL SERVICE HOLDRS T (OIH)
• Financial Select Sector SPDR (XLF)
• ML BIOTECH HLDR12/39 (BBH)
• iShares MSCI Japan Index (EWJ)
• streetTRACKS Gold Shares (GLD)

We will see how this works out...

By the way: the first "daily" trade on the QQQQ's was Long on 01/04/06 @41,51 > sold @43,23 for a gain of 4,14%.