Simple own pension fund with startegy code

1. Talaikis
In search of alpha.
http://www.talaikis.com
Simple own pension fund
Author : Talaikis
Categories : Investing
Date : December 10, 2015
This strategy is simple buy and hold of two equities, one representing "market", another -
Treasury bills, equal (50% of capital) weigh, fully invested.
Rationale.
1. The best method to avoid inflation induced entropy is to participate in the market.
2. During crashes, investors tend to switch funds to "safe" Treasury bills, so lowering crash
drawdowns we can achieve more consistent long term returns.
3. No fees compared to funds.
Assumptions. I assume dividends are reinvested "immediately", meaning small accounts will
have problems with brokerage fees ($2 as Interactive Brokers commissions).
Simple performance improvements. The main source of performance comes from time value
of money, so investing some predefined amount each year (or month) will improve results.
SPY (SPDR S&P 500 ETF) & TLT (iShares 20+ Year Treasury Bond) test:
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2. Talaikis
In search of alpha.
http://www.talaikis.com
QC Code:
[crayon-5671627b30dcf123706741/]
Later will show how simple tweak can greatly improve returns without applying any alpha (e.g.
skill).
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