bcncv

Alternatives to Buy and Hold (Part II)

Conceptually, I like the system, but Chris is right that no system works forever. Particularly, they always seem to work best just when you think they shouldn't.

Personally, I'm starting to develop a philosophy/strategy that you should apply diversification to trading strategies as well as asset classes. Theoretically (I have yet to test it), having a percentage of your portfolio as "buy and hold" and a percentage executing a strategy like this should significantly smooth out returns over time.