Is it possible to create an algorithm that makes a personal ETF?

Sorry if this question comes across as a bit stupid…I am still learning the fundamentals of both algotrading and paper trading.

I could be completely wrong but would it possible to make an ETF that has a high turn over rate when it comes to what stocks would be allocated within the ETF, lets say 10% of the ETF is tesla and then the algo spots a competitor performing better, the ETF would then sell the positions in tesla and allocate the % towards the new stock? I understand this method might be completely awful but I'm rather curious if anyone else has done something similar to this. If I have misunderstood something, I would be very grateful if you could point out where I am going wrong!

Submitted November 07, 2020 at 04:51PM by BarryBeeBensonWorks
via https://ift.tt/3n0tpJm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s