Investing in my portfolio’s high-risk funds only – Part 1

8 min Read Published: 26 Jan 2024

Back in October, I received the following request from an 80-20 Investor member via Chatterbox.

"Hello Damien

You previously did a really useful research article on using a 200 day moving average filter to determine whether to be in funds or cash, as a mechanism to reduce drawdowns while only slightly affecting growth rate. In this research one of the options you looked at was using this filter in conjunction with your higher risk portfolio which excludes funds from the low risk bracket and just uses med and high risk funds. My question is, what if you were to exclude medium risk funds as well and just use the more volatile high risk funds? Could this provide the better risk adjusted performance due to the filter, along with a better growth rate too, due to the fund performances?

I love using your portfolio and your research pieces as a starting point for my own investments, and I am very pleased with the results."

It was certainly an intriguing idea, which upon closer consideration would require a significant amount of time and effort to research.

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