1Mon·

Market correction

Hello everyone, this is my first major correction. What do you do in this case? I am considering buying the NASDAQ in 2 tranches, or opening a position in $ANET (-0.14%) and try to buy the remaining individual positions at the same level again. Actually, I didn't want so many individual stocks anymore... but the worst thing about the stock market for me at the moment is not falling into a buying addiction 😂

9Positions

€17,838.38

3.58%

11 Comments

Epi@Epi

1Mon

The addiction to buying will take care of itself if there is still a 30% drawdown at the end of the money. 😅

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Marto@Maddy-0

1Mon

@Epi what do you mean

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Epi@Epi

1Mon

@Maddy-0 You'll see... 😊

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Marto@Maddy-0

1Mon

@Epi achso...you mean if it then falls a lot further

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Marto@Maddy-0

1Mon

I'm thinking of switching to the ACWI. I have the feeling that it's boring as hell and doesn't do anything. Of course you don't get rich quickly, but it doesn't move up or down

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Epi@Epi

1Mon

@Maddy-0 7%pa stop. That is 0.5%pM. With 60% max drawdown. What do you expect? Boredom on the upside, action on the downside.
If you want action up and down, maybe 3xGTAA is for you?

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Marto@Maddy-0

1Mon

@Epi the question is how else to diversify safely without suffering a big loss in returns. I had a look at your 3x GTAA, but unfortunately it's very complicated

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Simone B.@TheRealSimone

1Mon

@Maddy-0 you have the acwi imi, or even more you have the mweq (it count only for 40% of the usa and the it sector is not that big and since it is equal weight you wont have to worry about single countries to become too big).

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Epi@Epi

1Mon

@Maddy-0 3xGTAA is a leveraged version of GTAA. This is significantly less risky (15%pa at 15%maxDD). Even less vola is possible with Faber's Ivy Portfolio. This also diversifies across different asset classes in an uptrend. You have to get to grips with it a little, but once you understand the principle, it's not that complicated.

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Marto@Maddy-0

1Mon

@Epi I have already seen the ETF that consists of derivatives. This raises tax-related questions about how the structure works. I find it extremely exciting and am very interested in it, but unfortunately you have to see through it first because there is no video or anything else. I follow your updates monthly and you often have optimization options, it doesn't get any easier😂 I only understood gold, NASDAQ and EM with 3x leveraged derivatives and accordingly buy monthly what is going strong "in the momentum"

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Epi@Epi

1Mon

@Maddy-0 It is not an ETF, but a certificate. Taxes are only incurred when the certificate is sold, not when it is reallocated. That was the reason for the certificate.
You can find conceptual information in the article on my profile. Search for Dual Momentum on YouTube. 3xGTAA is an optimized version of this. However, I am reluctant to release the exact parameters because it took a year to find sensible ones.

What you have understood is only a fraction. There are other asset classes in the pool (e.g. USDEUR, TLT), each with leverage other than 3 due to the different vola of the asset classes.
But the basic principle is correct: buy what has strong momentum. The definition and quantification of "strong" and "momentum" is difficult. There are several degrees of freedom 😉

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