Part 5. Volatility Reduction Strategy - STABILITY
Another new strategy - STABILITY - focuses not on maximizing returns but on reducing volatility.
Based on the backtesting results, we expect:
- Moderate outperformance relative to the S&P 500
- volatility below or close to market levels
- a higher Sharpe ratio
If these assumptions are confirmed, the STABILITY strategy may be of interest to investors who prioritize stability over maximum returns.
The observation period is still too short, so this is merely a working hypothesis.
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