For example, my trading system is long-term – with positions adjusted once a year. At the end of 2008, my formula gave me heavy buy signals on almost every position.

Now, when I was developing my system years ago, I simulated market years that were very bad – even Depression like – where I would not have enough money to rebalance every position. I developed rules about finding the weakest positions to triage in order to free up funds for rebalancing stronger positions. In all the simulations, my account recovered and became stronger.

So now, when the actual situation came up in 2008, I was able to act without hesitation.