Diamondjag Veteran  Posts: 123 Joined: 10/11/2012 Location: Brighton, Co.  User Profile | What we're talking about here is essentially market timing. I know those are dirty words in most "investing" circles. I would just like to caution those thinking about timing a long/short strategy...going into one strategy when the market is going "up" and another when the market is going "down". The first big question is when does the market turn? Then...how long is that turn going to last? We might be able to quantify the first (moving average cross etc.) but we will never know the second. More importantly, all "up" markets and "down" markets are not the same. Ed alluded to this in a post when he said," Reversion to Mean strategies (which is what all the "R" strategies are), work best in choppy markets that move up and down to provide reversion opportunities. In strong trends, Reversion Strategies will buy in downtrends and sell in an uptrend." Furthermore, a straight up market would work best with one strategy in OmniVest, a sawtooth up market (still an up market) would work best with another strategy, a swinging up market would work best with another strategy. So different strategies work best with different TYPES of up, down, and sideways markets. This may not be a dramatic revelation to anyone but I would suggest, if you're not going to use a single Portfolio (I'm going to switch to the word Portrolio here since that's generally what we're trading in OmniVest) highly tuned over a long period of different market conditions, that you don't go for just an "up" Portfolio and a "down" Portfolio but keep a stable of good Portfolios, as this thread is suggesting, and move into them as they are working (defined as making money). Let the Portfolios themselves tell you which one to use at any one time. [Edited by Diamondjag on 3/19/2014 12:12 PM] | |
