I'm starting out with $50,000. I will not be putting any more money in thereafter.
Step 1: put 80% of capital (i.e., $40k) in SPY, and 20% (i.e., $10k) in SHY
Step 2: Re-balance each month, potentially. The target is for SPY to gain 1% each month. So at the end of each month...
If SPY is +1%, do nothing
If at the end of a given month, SPY has gained > +1%, sell the excess (i.e., anything above what the SPY allocation would be if SPY gained 1% that month) out of SPY, and put that amount in SHY
If at the end of a given month, SPY has gained < +1%, take the difference (i.e., between the current value of SPY holding, and what it would be if SPY were to have gained 1% that month), and sell that amount out of SHY and put it into SPY
Step 3: rinse and repeat
Very new to this. Attached is what I have thus far. Thanks in advance
