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Hedging Best(SPY-SH), Best Combo3, Best(SPY-Cash) or SPY with the Best(Short) Large-Cap

Demonstrating the effect of hedging by using various percentages of the long portfolio value. The simulation is for the period Jan-2-2000 to April-1-2014.

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iM-Best(Short) Large-Cap System

This model is intended to be used hedging long market exposure, not as a stand-alone model. It periodically holds a maximum of 5 short positions of large-cap stocks. The model was backtested from Jan-2-2000 to May-4-2014 on the Portfolio123 simulation platform as a stand-alone-model and would have provided an annualized average return of 26.5% with a max drawdown of -22.7% over this period.

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