The Art of Execution by Lee Freeman-Shor

Author:Lee Freeman-Shor
Language: eng, eng
Format: epub
Publisher: Harriman House
Published: 2015-09-08T15:30:58+00:00

The advantages of a Hunter

In the tables below I show the hypothetical investment activities of a Hunter, an Assassin and a Rabbit, so that you can appreciate the power of the Hunter’s approach. All start out with $900 to invest.

The Hunter adopts the three-bites-at-the-cherry approach to investing, which means that he initially invests a third of the total amount he is willing to invest in the stock. If the price falls beyond a certain threshold, he invests another third. If the price falls yet further, he will deploy his final third of remaining capital in the stock.

The Rabbit invests his entire stake, $900, in one go and adopts a buy-and-hold approach. The Assassin also invests his entire stake of $900 in one go but will only keep holding it if it doesn’t hit the stop-loss set at 25% below his original purchase price.

Here is an overview of each strategy over the next four years:

Rabbit’s P&L

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.