wigmoneyParticipant12/03/2014 at 12:23 amPost count: 7
I recently joined your site and am really impressed with the momentum trading results. You have opened my eyes to a better way to make money for my investments and I really appreciate you making this available…
I was wondering, if you get enough of a hedge with the new GMRS Adaptive strategy(where you are putting a percentage in the EDV and an ETF with the best result), to not need the Bond Rotation program?
Or, If I use the GMRS(not with the adaptive strategy-just going with the leader for each month) and with the Bond Rotation Strategy if I can get better results and get the hedge I need for years like 2014.
Looking forward to your response…. I will be using “real money” starting January..
Frank GrossmannModerator12/08/2014 at 2:28 amPost count: 169
I think with the new adaptive strategies, there is less Bond Rotation needed to hedge the other strategies. However I would still invest at least 25% in the defensive Bond Rotation. A main reason for me is also that I like to profit from market corrections (VIX spikes), and normally you have better profits, if you don’t allocate too much in MYRS during low volatility times, but if there is really a huge VIX spike to at least 22, then you can move some defensive capital out of the BRS strategy in ZIV. Normally ZIV will then be down about by 20%, and because of the mean reversion of fear (VIX), ZIV is always the ETF which recovers very fast.
But anyway I would always invest in the adaptive version of the strategy and not just in the top ETF. The stock-Treasury ratio of the UIS, GMRS, GMRSE and GSRS is a good indicator about the total needed hedge allocation and in general about the market condition.
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