MDM - Systematic vs discretionary

Published : January 17 2011 at 13:28 ET

The model operates on a systematic basis. There is the rare unusual signal that can occur but this is still on a statistical systematic basis that takes into account a number of variables. Discretion has more to do with position sizing, number of ETFs, and whether one opts for 1x, 2x, or 3x type ETFs.

When such a rare unusual signal does occur, we used to label it discretionary but it is in fact still on a statistical systematic basis.

We have revised the FAQs to reflect this:

What is the discretionary signal and how does it apply to this model?

Why don't you show results for the discretionary portion of your model?

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