The Stars model requires no knowledge of stock picking or which way the market will go.

With a buy and hold strategy market direction is easy. You hold your investments even if the markets corrects. You will have drawdown but not a loss because you don’t sell. A good strategy would actually buy more shares at the low price. It would buy more of the volatile shares when you rebalance.

Stars has a holding period of 8 years. Most of the great wealth is made with buy and hold strategies because it gives the holdings time to compound their performance. Buy and hold strategies also differ taxes. In the case of Stars sales at rebalancing are to keep the volatile TQQQ position from getting too large which would increases drawdown. SPY is sold at correction lows to buy more cheap TQQQ.

Picking individual stocks for 25 years is near impossible. However, you can buy cap weighted ETFs that you can hold forever. These ETFs are constantly improving what they own by incrementally buying what is rising and incrementally selling what is falling. Stars owns SPY and TQQQ. 85% of investors have been unable to beat the performance of SPY for 70 years. TQQQ is the best performing triple. TQQQ is always trying to hold the best long term performing stocks.

Buy and hold strategies may not be for you if drawdown concerns you. Remember great performance produces drawdown. Also in a major correction everything corrects except cash and bonds.

Stars outperformed the S&P over the past 25 years by a factor 17.