HQPP

[ls7550]

How/when does one start such an investment programme?. It would seem to me that timing the start date would have a lot of influence on returns, at least in the medium term.

The PP is quite neutral and linear overall

http://www.bogleheads.org/forum/viewtopic.php?p=701108#701107

The Quant (Ivy) is a hedge type (stop-loss) style.

Both can be started at any time and whilst some periods might prove to be more favourable than others generally there is little point in attempting to apply market timing.

One of the reasons I opted for the blend of PP and Q was to avoid excessive initial allocations in any one style alone. Both have similar longer term results and the wider diversity therefore provides that bit more comfort/protection.

am I correct in understanding that trades are made, if they are called for, only once a month? So if no signal is in place in that one-day trading window, then no action is taken for the month?

Yes monthly reviews only. Whatever applies on that day holds for the rest of the month. This has the effect of minimising whipsaws - so you're not trading repeatedly between IN and OUT as you might if you tracked the portfolio more frequently.

This is also the reason I haven't got back to you earlier jl as I review on a monthly basis based on the closet weekend to the end of each month (which differs to Mebane's approach of last business day of each month reviews). That can change shorter term results, but generally over the longer term things all even-out overall. For example for April my review had commodities switch OUT for the month whilst Mebane's GTAA model in being reviewed several days later has Commodities IN for April.

Best. Clive.

[Montazeri]

Hi Clive,

I stumbled on your Web site while researching Faber's Ivy portfolio model. I'm attracted by the impressive reduction in volatility and drawdowns.

Your approach of a hybrid model also looks interesting.

Here are two basic questions: How/when does one start such an investment programme?. It would seem to me that timing the start date would have a lot of influence on returns, at least in the medium term.

Also, am I correct in understanding that trades are made, if they are called for, only once a month? So if no signal is in place in that one-day trading window, then no action is taken for the month?

thanks for any pointers to getting started.

jl

[ls7550]

As of the start of 2010 I've switched to investing in a hybrid blend of Mebane Faber's Quantitative model and Harry Browne's Permanent Portfolio that I call HQPP

The style is detailed in greater depth and real forward time progress is being recorded over on my web pages located at http://jfholdings.co.uk.

Thanks to Investors Hub I've created this board to enable others to join in on discussing the HQPP investment style.

Welcome to one and all.

Clive.