Take my strategy, rename it Pro-Elite, charge $60 for it, and mention it has near zero downside risk!!!
http://grinpress.com/
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“My” strategy! The 200 day moving average strategy is an old one – known well before your time. When I started work in this area 5 years ago I was told that the 200 day strategy was the decades-old standard.
There is even a 1968 paper in the Journal of Financial and Quantitative Analysis that says the “200-day Moving Average … has been recommended by many authorities.”
I wonder if it's the same guys at Proetf.com that copied verbatim the Decision Moose.
Here we go again….from the FAQ
11. Why are you taking credit for using the 200-day moving average model?
We’re not, and we are very upfront that trendfollowing style models have been around for a long time.
http://www.michaelcovel.com/pdfs/stig-ostgaard.pdf
Use of the word “my” instead of the word “the” seems to me to be taking credit for the strategy. “The strategy from MY book” would be a better phrase and keep the pedants at bay.
I'm referring specifically to the 10 month SMA applied to five asset classes as published in my paper. That is “my” strategy.
I'm not referring to using moving averages or trendfollowing in general as my strategy.
No. This guy at least links to Meb's paper. He doesn't claim to have invented it, but rather is packaging it (for folks who find Meb's TAA paper 'too technical' or something, I guess). As explained at http://www.decisionmoose.com/Moosecalls.html , proetf.com appears to be blatant copyright infringement. (As I write, http://www.proetf.com is not available. Likely, their ISP pulled the plug when notified.)
Ha ha! If that outfit is able to make money and keep customers happy, then maybe you could offer them an affiliate contract to sell some of your higher octane strategies
What is really great about the presentation is that they have already gathered Testimonials. Pretty remarkable for a very short time in operation. A second noteable comparison is that your book with lots of additional material is available on Amazon for LESS money than these people charge for a booklet. It would seem reasonable for them to acknowledge more of your strategy development and at least provide a link to The Ivy Portfolio at Amazon bookseller.
Nick, think before you write please.
I was hired as a quant 5 years ago by a wealth manager to devise a strategy based on the 200 day MA and n asset classes. There was a LOT of work to do – minimizing trading costs and optimizing n with the constraint that it had to be a 200 day MA strategy so that it could be openly explained to clients.
It cost a LOT of money (as Mebane would know) to set it up. Instead of arguing over whose strategy it is (it is public domain) I should have just said that charging $60 for it could be a reasonable fee. “My” formula for dynamically working out the optimal value of n added a lot to the Sharpe Ratio but any quant could work it out and I've seen it in the literature so I would rather say “the” formula.
As toptick says, it's all about the packaging.
You say it added a lot to the Sharpe ratio.
Did it improve the compounding?????
Of course it did and by a lot too. But that's just a reflection of having more asset classes to choose from rather than any timing skill.
For $20 a pop, I'll sell anyone an easylanguage strategy that I can write in 4.5 minutes based on this strategy. Dump your money at tradestation, plop the strategy in, and kick your feet up…it's all automated. Write me if you're interested: (dunamis.partners at gmail dot com).
Faber – I think you're reading into this way too much. There are countless financial advisors that charge a ton more than $60 and basically run a very similar tactical strategy – sure they bundle it with financial planning, etc, etc, but in the in the end it costs the clients a bit more than $60. This has been going on ever since I've been in the industry, and especially useful because it allows the FA to prove that are doing something with the fees they charger rather than the idle appearance of buy and hold (hard to justify your fees there, even if it's the best approach for the client)
I agree that the site was a blatant rip – but really isn't it splitting hairs ?- they could have spent 10 mins changing some basics around (and not given a link to your white paper) and it would have appeared to be their own creation
I find it funny that so many folks are giving Meb grief over his pride of ownership to his research and ideas–yet they are on his blog where he discusses his research “FREE” of charge. Obviously, there are a lot of folks on here that have never had their own business, and think they should be given everything for free. Probably the same people who believe the rich are evil and they got there by taking advantage of others vs. the truth of hard work and determination.
Meb, thanks for the ideas, concepts and research. I for one appreciate the thought provoking content.
I find it funny that so many folks are giving Meb grief over his pride of ownership to his research and ideas–yet they are on his blog where he discusses his research “FREE” of charge. Obviously, there are a lot of folks on here that have never had their own business, and think they should be given everything for free. Probably the same people who believe the rich are evil and they got there by taking advantage of others vs. the truth of hard work and determination.
Meb, thanks for the ideas, concepts and research. I for one appreciate the thought provoking content.