Hi Buzz, Re: Profit Capture............
It might end up depending upon the frequency of rebalance and the amount of deviation before rebalance occurs. For instance if one rebalanced once a month no matter what, then the cyclical profit would be smaller. However if one also set a % deviation threshold, then LIFO profits might be nearly the same.
I've not puzzled out where internal risk threshold growth would go in this rebalance mode. With traditional AIM we're increasing PC with each buy cycle and therefore raising the value at risk before selling through each full cycle. I'm not sure where rebalance goes over the long haul vs traditional PC AIM.
Buy from the Scared; Sell to the Greedy.....
