Buy, Sell, or Hold on a Drawdown?

Discussions about personal psychology for the individual trader.
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nodoodahs
Roundtable Knight
Roundtable Knight
Posts: 218
Joined: Wed Aug 09, 2006 4:01 pm

Buy, Sell, or Hold on a Drawdown?

Post by nodoodahs » Sun Sep 05, 2010 11:46 am

http://www.attaincapital.com/alternativ ... alysis/380

You could do the same study with passive investments (like a 50/50 U.S. stock/bond mix) and I'm pretty sure you'd get the same results, their "buy a drawdown" is essentially a rebalancing triggered by deviation from target allocation (as opposed to a time-stop rebalancing such as annually).

Reminds me of this cartoon:
http://i563.photobucket.com/albums/ss73 ... 1283374272

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