Capital allocation strategy based on the lifecycle of a trading model （2）

章節 15 Capital allocation strategy based on the lifecycle of a trading model （2）

Capital allocation strategy based on the lifecycle of a trading model （2）-第1張圖

The table presented above demonstrates a gradual approach to adding and reducing investments, with each phase having a clear definition. Defining D1 and D2 is the most challenging aspect of this approach, as it depends on the length of the trading model's life cycle and the degree of variation after reaching its peak. If the trading model's life cycle curve drops rapidly after reaching its peak, then the distance between D1 and D2 will be short. Conversely, if