Does it feel a little strange that the two portfolios' rules could conflict, as in you could be 75% bonds for GEM while the bonds momentum says, no, bonds are risk off, 25% cash? I'm sure it still dampens volatility overall, it just seems like a counterintuitive mix when they're both risk off.
How did the trading compare with moving averages? I recall the book said they work but trade more.
Bond Dual Momentum
Moderator: Global Moderator
Re: Bond Dual Momentum
I use the simple dual momentum plan, where you are either in stocks or bonds. I'd just like to avoid times like now where bonds can take a steep drawdown. There's no contradiction.
Re: Bond Dual Momentum
Understood, thanks for clarifying. I don't recall where I came up with the idea you were talking about 75 GEM, 25 bonds dual momentum.