Combining short- and long-term positions

The Multi-Timeframe Advantage

Strategic integration of short- and long-term positions creates a diversified portfolio that captures immediate opportunities while maintaining long-term growth potential.

Core Allocation Framework

1. Time Horizon Matrix

Position Type	Holding Period	Portfolio Allocation	QuantWave Tools
Long-Term Core	1-5+ years	50-60%	Macro Trend Analysis
Medium-Term	3-12 months	25-35%	Sector Rotation Models
Short-Term	1 day-3 months	10-20%	Daily Forecast Signals

Implementation Strategy

1. The Layered Approach

• Foundation Layer: Buy-and-hold index ETFs
• Strategic Layer: Thematic investments
• Tactical Layer: QuantWave short-term signals

2. Correlation Management

• Ensure timeframes complement rather than conflict
• Use short-term trades to hedge long-term exposure
• Rebalance across time horizons quarterly

QuantWave Integration Tools

1. Multi-Timeframe Dashboard

• Visualizes portfolio by holding period
• Tracks performance by timeframe
• Alerts to overconcentration

2. Horizon Blender

• Optimizes allocation across timeframes
• Backtests strategy combinations
• Suggests rebalancing moves

Risk Management Protocol

1. Position Sizing Rules

• Long-term: 2-5% per position
• Medium-term: 1-3% per position
• Short-term: 0.5-1.5% per position

2. The 30% Liquidity Rule

• Maintain 30% in liquid assets
• Allows capitalizing on short-term signals
• Provides rebalancing flexibility

Common Pitfalls

• Mixing time horizon strategies
• Overtrading long-term positions
• Underestimating correlation risks
• Neglecting tax implications

Performance Metrics

• Return contribution by timeframe
• Risk-adjusted performance
• Correlation effectiveness
• Rebalancing benefit

QuantWave's multi-timeframe approach enables investors to simultaneously pursue strategic goals and tactical opportunities. By systematically allocating across time horizons and using dedicated tools for each, you can build a robust portfolio that performs in all market conditions.