Re: Back to the Simple, Dumb PP?
Posted: Wed Apr 27, 2016 4:59 pm
How often have you had to rebalance since 2012, or whenever you started?
I started in 2014 and rebalance annually. 2014 I was in in 2x ETFs but then liquidity got absolutely crappy in UBT and I liked the idea of upping the cash component so went to 3xs. I should have rebalanced once out of cycle in 2015 but didn't pull the trigger due to fear and it hurt results. So this year I decided to just bite the bullet and do it in February which has worked out very nicely. I'd love to do it again as summers tend to not be that great for stocks but I'm not to the rebalance band. My allocation is 16.67% per asset with rebalance bands at 8.33% and 25%. Currently stocks are at 23%. I do 8.33% to SPXL and 8.33% to TNA for the stock component.stuper1 wrote: How often have you had to rebalance since 2012, or whenever you started?
So if you do the math I am at 2x a regular PP...CAGR/MaxDD performance for start dates as follows:
2012: 3.88/-7.95 vs 7.27/-16.55
2014: 5.74/-6.93 vs. 10.88/-16.55
However, this isn't all that great. a 50% SHY and 25% each to TMF and SPXL clocks the PP by 50% performance and drawdown...