- ago
Hello,
I have been reviewing the Tactical Asset Allocation strategy that is one of the published strategies and I believe there is an error.( corrected code below )

CODE:
//sort the participants by AvgROC value (lowest to highest)          // participants.Sort((a, b) => a.UserDataAsDouble.CompareTo(b.UserDataAsDouble));          participants.Sort((a, b) => b.UserDataAsDouble.CompareTo(a.UserDataAsDouble));


The Ivy portfolio strategy should be ranking the avgROC value from highest to lowest and selecting the symbols with highest ROC.
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Cone8
 ( 5.78% )
- ago
#1
Thanks, you're right. We'll add a version 2 with the correction in the Sample Strategies.
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Cone8
 ( 5.78% )
- ago
#2
We'll still need a fact check by someone what has the book, because there are multiple comments in the code that indicate that the lowest average ROC values were actually intended to be selected - although the strategy clearly performs better with the the highest values.
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- ago
#3
I no longer have a copy of the book but here is a link to the original paper by Faber that he based the book on. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=962461

The rules are very simple:


The rules in the WLD strategy are not consistent with the rules listed above. The WLD strategy uses an ROC for ranking and the rules from the paper use a binary above/below SMA to determine if etf should be held. And Faber's strategy uses monthly bars, not daily bars.
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- ago
#4
I found a copy of the book and see that it does have a rotational strategy similar to the WLD strategy but it buys on strength, not on weakness. Here are the rules:



Close to the WLD strategy if the symbols are sorted on strength instead of weakness.
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Cone8
 ( 5.78% )
- ago
#5
Cool. v2 is on the way.
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