CoreEdge Strategy

Strategic Investing with Core Edge

More profitable than DCA, the CoreEdge Strategy is a disciplined approach to investing that combines stability with strategic rebalancing. By maintaining a consistent core value and leveraging market fluctuations, it ensures you buy low and sell high—capturing gains while minimizing overtrading. Ideal for stable stocks or ETFs, this method offers a balanced edge for consistent growth and long-term success.

What is the CoreEdge Strategy?

CoreEdge Strategy: A Smarter Approach to Profitable Investing

More profitable than traditional Dollar Cost Averaging (DCA), the CoreEdge Strategy is a disciplined and methodical investment approach designed to optimize returns while maintaining control and reducing overtrading. This strategy is particularly effective for stable stocks or ETFs, leveraging their predictable performance to create consistent gains. CoreEdge is similar to "Constant Dollar Investment", "Constant Value Rebalancing" and "Core Number Compounding" made popular by Oracle

How the CoreEdge Strategy Works

The CoreEdge Strategy revolves around maintaining a predefined “core value” for your investment. Here’s how it works in detail:

Step 1: Establish Your Core Value

Start by selecting a fixed dollar amount, called the “core value,” that you want to maintain in your investment. For example, you might decide your core value is $5,000. This amount will act as the anchor for your trading decisions.

Step 2: Monitor the Value of Your Investment

Track the current market value of your investment regularly. This could be daily, weekly, or based on a schedule that aligns with your goals and the market’s volatility.

Step 3: Rebalance Using Incremental Adjustments

When the value drops below the core value: Add funds to your position to bring it back up to the core value. For instance, if the investment value falls to $4,700, you would invest an additional $300 to restore it to $5,000.

When the value rises above the core value: Sell enough shares to bring the value back down to the core value. For example, if the investment grows to $5,400, you would sell $400 worth of shares to return it to $5,000.

Step 4: Apply a Buffer to Reduce Overtrading

To avoid excessive trading, set a threshold or buffer zone around your core value. For instance:

• Only add funds if the value falls more than $100 below the core (e.g., below $4,900).
• Only sell shares if the value exceeds the core by $100 or more (e.g., above $5,100).

Over time, you might increase this buffer to $500 increments to further streamline your trades. CoreEdge is flexible and in this example we used specific dollar amounts, so if you sell at $5,100 that would be 2% of $5,000, 5% of $5,000 is $250 and 10% is $500 and so on.

Why the CoreEdge Strategy Works

The CoreEdge Strategy is built on the principles of buying low and selling high, but it introduces a structured framework that takes advantage of market fluctuations. Here are its key benefits:

• Profit from Volatility: By rebalancing during market swings, you systematically capture gains during upswings and acquire more shares at lower prices during downturns.
• Disciplined Approach: The strategy removes emotional decision-making, ensuring that your trades align with a predefined plan.
• Reduce Overtrading: Buffer zones and incremental adjustments minimize unnecessary trades, reducing transaction costs and tax implications.
• Simplified Management: With a consistent core value and clear rules, the strategy is easy to manage, even in volatile markets.

Ideal Use Cases

The CoreEdge Strategy is most effective with assets that demonstrate stability and moderate volatility, such as:

• Large-cap stocks (e.g., Apple, Microsoft)
• Broad market ETFs (e.g., S&P 500 ETFs, Nasdaq ETFs)
• Sector-specific ETFs with a history of steady performance
• Need more ideas? Checkout our Devine 5 stocks and ETF's

Example in Action

Let’s say you start with a core value of $5,000 invested in a reliable ETF. Over the next few months:

• The ETF’s value rises to $5,600. You sell $600 (12% of $5,000) worth of shares to bring the value back to $5,000, locking in your profit.
• Later, the market dips, and the value falls to $4,400. You invest an additional $600 to restore the core value, acquiring more shares at a lower price.

By consistently following this approach, you maximize your returns by buying low and selling high without needing to predict market movements.

When do I rebalance?

That's up to you! You can rebalance daily, weekly, monthly or any timeframe. It really depends when you are able to trade. Here's a few key times to buy or sell.

When premarket and open has a massive spike or drop and your total value is above or below your threshold.

End of day when buyers and sellers are repositioning.

Morphing CoreEdge

Once you've successfully used CoreEdge and want to increase your position size you simply change your core number. You decide if you want to let the market get you to your new core value or if you want to buy more shares. For example if you use CoreEdge on SPY or QQQ and the market makes a huge move up, you may want to adjust your position so the core value is larger, simple as that. It's important to continue to use the Core rules because your edge is the compounding effect of the re-investments.

Conclusion

The CoreEdge Strategy offers a balanced edge for investors seeking consistent growth and disciplined investing. By maintaining a stable core value and rebalancing strategically, it provides a practical way to turn market volatility into opportunity. Whether you’re new to investing or looking to optimize your current approach, the CoreEdge Strategy is a simple yet powerful framework for long-term success.

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