Review your Strategies (=Tactical Asset Allocation Portfolio)

Rebalancing the portfolio monthly/quartely in contrary to lazy portfolio (fire and forget).

Min. Position Size

  1. Define Statement of Profit Success (95% confidence that you have more than 2.0 Return/DD Ratio)
  2. Find the position size (via Monte Carlo) that fulfills statement
  3. This position size equals your fraction 0.01

Max. Position Size

  1. Define Statement of Risk Tolerance (95% confidence that you have no more than 10% drawdown per year)
  2. Find the position size (via Monte Carlo) that fulfills statement
  3. This position size equals your fraction 1.00

Position Size Strategies