after spending a couple of weeks on this topic I am unable to set the rules for a simple trading system that manage 3 assets.
I have read MC wiki but it is not written for a novice like me.
By the way, the rules are quite simple for a balanced portfolio (e.g. 60 equity / 40 bond):
1. for both assets I use monthly chart and apply two simple moving averages (2m and 10m);
2. if the 2m moving average is above 10m ma for equity asset, I invest 60% of available cash in equity fund like VTSMX. The same rule applies to bond asset VBMFX;
3. if the faster moving average is below the slower one, I sell the asset and buy a long term bond fund like VUSTX.
In other words, I could have 4 scenarios for the next month:
1. long 60% equity fund and 40% bond fund
2. long 60% equity fund and 40% VUSTX
3. long 60% VUSTX and 40% bond fund
4. long 100% VUSTX
I review asset allocation on the last day of the current month and then manage positions at the open of the next month.
Isn't that simple?
Well, how could manage these rules using portfolio trader?
Thanks in advance
TT
