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steven poser wrote:
> How about option 5: Take some profits and let some ride? I suspect that
> is what I'd do if I felt the risk of intervention were high.
Since Option3 was higher than Option 4, we can conclude that Option5 (a
hybrid) will fall somewhere between the two. However, with this being the
case, 5 would be superior to 4, no matter what the distribution.
The strategy of 5 works in cases where expected return would be higher with
holding, but the potential drawdown of holding the whole thing would be too
high. In this example, though, the return is less as well.
Regards,
A.J.
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