MAC annual returns were usually higher than buy-and-hold at same levels of risk. In a risk-and-return tradeoff scheme, buy-and-hold style offered no adequate risk premiums to make up for the wide range of volatility.

By comparing monthly performances between MAC and buy-and-hold, the MAC system captures reutrns in bull markets and avoids most bear markets.

Wong’s findings are certainly interesting. We’ve made no secret of our opinion regarding the buy-and-hold philosophy, and we’re clear proponents of trend following with set entry signals and stop losses in place. Whatever signals you choose to follow, be sure that your strategy is firm and adhered to without fail for the best results.

Max Chen contributed to this article.