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>(2) strategy against market downturns (use 4% of
your funds to buy puts -- against a standard index, such as the Russell 2000 -- and consider it to be an insurance premium payment that you will lose if the catastrophe does not take place)>

This sounds very interesting. Mechanical investing seems to offer great returns at a price of great volatility. It would value-added to at least ponder the impact of some kind of put insurance. Do you by any chance know what kind of Russell 2000 puts he was referring to? In other words, for example, at the money? And what kind of time frame?

Much obliged,
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