4 Comments
User's avatar
tazman's avatar

do you have a per use model ? don't need to run 12 per month .

Portfolio Armor's avatar

Not currently.

You wouldn't want to start 12 of these portfolios per month, of course, but you might want to play around with different decline thresholds before deciding on which one to use.

AJ Gyles's avatar

It seems like the success here is just because you picked two stocks that did amazing YTD. It's unclear how the hedging actually helped in this scenario. I guess it gives you the confidence to go all in on these two particular rather small stocks?

Portfolio Armor's avatar

Yes, hedging enables you to concentrate your assets in a handful of names you think will do best; because you're hedged, you don't need diversification to minimize stock-specific risk.

There are cases though were hedging actually improves your returns: where one or more of the handful of names does terribly, but your hedged position is only down a little bit.

Just to clarify: the PA algorithm picked the names in that portfolio, not me.