i am out 2 goodnite guys
Night everyone, see ya in the morn
Battlestar Galactica tonight.
yes – this is really easy to remember. trending either way: CPPI > BH > CM flat, oscillating it flips: CM > BH > CPPI BH slope = one, so you know it will always be in the middle CM < 1, but it has contrarian rebalancing, so it captures the value in an oscillating market CPPI > 1 because it is a trend following strategy, so it is the best in trending markets, but gets hosed in oscaillation markets because it sells when prices decline, which (if it could see the future), should be buying more exposure in anticipation of the upcoming reversion in prices. also, CM = concave (outperforms in flat markets but underperforms in trending), CPPI = convex (outperforms in trending markets) – picturing the graphs helps. Big Babbu Wrote: ------------------------------------------------------- > MGG…make sure you know which of those > strategies performs best in > 1) upward trending > 2) downward trending > 3) osculating but flat markets. > > in order they are > 1) CPPI, Buy and Hold, Constant Mix > 2) same as 1 I believe > 3) Constant Mix, Buy and Hold, CPPI