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How can I Smooth out the performance of my portfolio?
Smooth and stable performance is a very important attribute of a strategy. How to easily smooth out performance of an existing strategy?
1. Pick your desired portfolio, fund, or strategy you would like to smooth in Quantpedia’s Portfolio Manager, in our example we simply picked an S&P 500 ETF:
3. Analyze how different Volatility Targeting methods perform and how they are able to smooth out performance of your strategy:
- Historical Volatility Targeting
- Exponential Volatility Targeting
- Momentum based Volatility targeting
4. Analyze performance and volatility of your strategy/portfolio with and without Volatility Targeting:
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