10-31-2014 AAR Strategy Update Posted

Posted on October 31, 2014 by Brian Johnson

The October 31, 2014 AAR Strategy update is now available on the AAR Subscribers page. If you are not currently a subscriber and would like to learn more about the strategy, there is a detailed description on the AAR Strategy page.

The AAR strategy is a conservative, long-only, asset allocation strategy that rotates monthly among five large asset classes: large-cap U.S. stocks, developed country stocks in Europe and Asia, emerging market stocks, U.S. Treasury Notes, and commodities. The strategy was inspired by the Ivy League portfolio and uses trend and technical filters to reduce downside risk.

If none of the five candidates pass their respective trade filters, the AAR strategy remains in cash for the month. Stop-loss orders are used on every trade to control losses and to facilitate position sizing and risk management.

Brian Johnson

About Brian Johnson

I have been an investment professional for over 30 years. I worked as a fixed income portfolio manager, personally managing over $13 billion in assets for institutional clients. I was also the President of a financial consulting and software development firm, developing artificial intelligence based forecasting and risk management systems for institutional investment managers. I am now a full-time proprietary trader in options, futures, stocks, and ETFs using both algorithmic and discretionary trading strategies. In addition to my professional investment experience, I designed and taught courses in financial derivatives for both MBA and undergraduate business programs on a part-time basis for a number of years. I have also written four books on options and derivative strategies.

View all posts by Brian Johnson →

This entry was posted in Asset Allocation Rotational (AAR) Strategy, Market Timing, Risk Management, Strategy Development, Technical Analysis and tagged asset allocation, asset allocation rotational strategy, asset allocation strategy, Ivy League Portfolio, rotatinal strategy, trade, Trader Edge. Bookmark the permalink.

2 Responses to 10-31-2014 AAR Strategy Update Posted

Rick Cremer says:

November 4, 2014 at 4:20 PM

Does the book…

“Option Strategy Risk / Return Ratios: A Revolutionary New Approach to Optimizing, Adjusting, and Trading Any Option Income Strategy”

…also contain options income strategies for simple income producing options spreads? I.e. Bull Put and Bear credit spreads? That’s all I trade, usually using the SPY, EEM, and IWM ETFs. Thanks.

Reply
- Brian Johnson says:
  
  November 4, 2014 at 6:17 PM
  
  Rick,
  
  The risk/return ratios presented in the book were developed specifically for market-neutral option income strategies and are not directly applicable to directional option income strategies (such as bull put spreads or bear call spreads).
  
  Please let me know if I can answer any additional questions.
  
  Best regards,
  
  Brian Johnson
  
  Reply