Discretionary decisions are where most portfolios lose their edge. A rules-based portfolio replaces opinion with a written policy: allocation bands, rebalancing triggers and hard risk limits.
The three rules that matter
- Define the maximum weight per asset before you buy it.
- Rebalance on drift, not on headlines.
- Cut exposure automatically when volatility exceeds your band.
Written down and automated, these rules survive the days when conviction does not.
Leave a Reply