I thought some of you might find this concept interesting. We've all heard that managed funds tend to underperform index funds over the long term, so why not sell the managed fund and buy the index with the proceeds for a small but consistent profit? Managed funds tend to have much higher fees associated with them, so there's at least one real reasons this should be true.
This is not really an algo, just though it might spark some ideas. Maybe going long/short at strategic times could increase the yield. Also, if you want to hedge out your account when the market gets volatile, managed funds might be a better choice. I tried some other funds, and most of them seem to work, but the yields are pretty small so it doesn't seem worth tying up capital in something like this, maybe somebody will get creative with it though.
David
