Post #3749 by anchak on the Mechanical Investing board

Investment Strategies / Mechanical Investing ❤

Unthreaded | Threaded | Whole Thread (39)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 2

My concern with this one - is the possible hidden risk of "implicit timing" in the calendar switch.

2 of the 3 sizeable bears in post 2009 era ended in Dec - ie 2018 and 2022 - thus significantly aiding the rebalance.
Similarly 2 great bulls ended early ie Feb 2020 ( COVID) and Jan 2022 ( Rate fear) - allowing a booking of TQQQ profits.

A much more robust view would be from GTR1 - which tests impact of Starts - but here it should be testing by moving the rebalance dates by 1 Qtrs say
ie Jan 1st, April 1st, July 1st, Oct 1st - and see if it holds.

Best
AC

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (39)

Prev | Next

Announcements

Mechanical Investing FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.