Vanguard has commission fee ETFs which allow vanguard customers to purchase or sell any of their ETFs at any time. I'm looking to create a strategy that would minimize my downside in the eventuality of an severe stock market correction.
At the moment, I'm buying on the dip, which is a fairly well known strategy for purchasing stocks/ETFs in a bull market. I purchase a small amount every week, depending on where in the cycle we are. In the last 6 months, the market as a whole as increased (as evidenced by the record S&P 500/DJIA).
However, every bull market must come to an end. Almost no one can foresee when a market correction will occur. I've created 60 day Good-Till-Cancelled stop limit orders on each ETF I own, which will trigger when each ETF drops to 5% above my average cost price. That way, I should be able to get some upside whilst the market slides down and I can buy back in later.
Does this seem sensible as a strategy? Would there be a better way to protect my investment whilst allowing me to keep investing in this rather expensive market? Thoughts appreciated.