Originally Posted by LOL!
... Another is that one has to do it with one's entire portfolio as in go 100% into cash, then 100% into stocks, then back, then ....
Yes, I've recently come to appreciate this more.
Now I have a 60/40 portfolio that can go to a 40/60 under one set of market numbers and to even 0/100 under a more extreme set of these numbers. By going to the first level of risk reduction, I'm reducing the chance that my model doesn't work as well as backtesting indicates and/or that the market takes a terrible sharp plunge that we have not seen in US market history.