Short Option Overlay for Trend Positions

One of the most frustrating things about a long- and medium-term trend strategy (including the super long-term trend following idea of buy-and-hold) is that prices seem to spend most of the time going nowhere and often retrace to give back a portion of those nice book profits. „The (buy-and-hold) investor only spends about 22% of…

A Barbell Portfolio Strategy

with a realtime review of portfolio performance during the recent market pullback. I want to take a look at some of my core portfolio strategies from a fresh angle. The basic principles discussed are easily transferable to other types of portfolios. A key portfolio feature, I strive for, is an adaptive combination of strategies with…

Your Entry may be less important than you think

Choosing the right time horizon is of essential importance to find a viable edge for a trading strategy. Many short-term traders tend to show an unhealthy obsession trying to optimize trade entries. Long-term investors, on the other hand, often enter in an arbitrary fashion and could improve results by using broad entry criteria. My theory…

Trend Following for Individual Investors – A Manageable Futures Strategy

A traditional long-only portfolio consisting of globally diversified asset classes can be greatly enhanced by a truly diversifying strategy, namely trend-following managed futures. We have over 40 years of real return data *,*** available from different CTAs running such strategies – there is even research testing the validity of the concept going back 800 years in…

Working with different Market Regimes Part II

Based on a refined, trustworthy investment philosophy, I return to the practical implementation of a key question: How is successfully adapting an asset allocation to market conditions possible and can it yield higher risk- adjusted returns than a static portfolio?   I concentrate on the third basic building block of my investment philosophy – systematic downside protection through dynamic…