Framework
The DNCT framework
Summary
The DNCT framework centers on staying invested through a core, using tactical sleeves selectively, and building a rules-based process that survives real conditions without depending on perfect prediction.
The DNCT framework
The DNCT framework is built on a simple premise: I want to stay in the market for the long haul. Markets are generally long-biased, and my primary job is to stay in the game without being shaken out by the constant noise.
I move away from “barbell theory” or extreme all-in/all-out strategies. Instead, I use a core-plus-tactical approach:
- Stay invested through a core: This is my anchor. It preserves exposure and prevents me from trying to time the market’s return.
- Use tactical sleeves selectively: These are my satellite positions. I trade them based on specific conditions, sector rotations, and risk-adjusted setups.
- Scale in, don’t force entries: I don’t try to catch the absolute bottom. I scale into positions as the setup develops and the price confirms the thesis.
- Trim when stretched: Markets move in cycles. When a position becomes extended or the risk/reward changes, I trim to lock in gains and reset my exposure.
- Remain flexible: Rules are essential for discipline, but they are not rigid. If the market conditions change, my strategy changes with them.
This framework isn’t designed to beat the market every week. It’s designed to keep me in the market for the long term while allowing me to capture tactical advantages when they appear.