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Long/short VP

Posted: Sat Jun 04, 2011 2:04 pm
by SanMiguel
Has anyone tried a long/short version of the PP using timing?
This would involve being either long or short the 25% allocation for one area.
eg at present you might be short 25% equities,
long 25% bonds,
long 25% gold,
long 25% cash (always long on this allocation).

Ok, so 50% PP and then 50% can be used to go long.short on...same difference really.
Out of £10,000 we end up with
£1250 long equities
£1250 long gold
£1250 long bonds (long dated)
£2500 long bonds (short dated or just any old money market fund)
£1250 to play equities
£1250 to play gold
£1250 to play bonds

Re: Long/short VP

Posted: Sat Jun 04, 2011 2:08 pm
by MediumTex
I think Clive has probably tried about everything.  I'm sure he will have some helpful comments.

Re: Long/short VP

Posted: Sat Jun 04, 2011 2:16 pm
by SanMiguel
MediumTex wrote: I think Clive has probably tried about everything.  I'm sure he will have some helpful comments.
Market timing is not so much the thing I have the issue with, you make your call and go with it, it's when to cut it short with a stop loss.
I'm thinking if the market moves against you 10% then it's time to cut the short trade and get long.
My alternative was a simple 13,34 exponential moving average on the weekly charts and just take the simple crossovers.