Adrian ReidFounder of Enlightened Stock Trading

Building a Winning Portfolio: Diversify Your Trading Strategies for Better Returns

11 Sept 2025 · 0 min

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Adrian Reid argues that no single trading strategy is likely to meet long-term objectives, and recommends combining multiple styles—trend following, mean reversion, rotational momentum, long and short positions—across different markets into a diversified portfolio. He claims diversification improves returns, reduces drawdown, and decreases the number of days the portfolio is in drawdown.

Trading different markets, trading different styles, trend following, mean reversion, rotational momentum, etc. Long and short and combining into a portfolio that meets your objectives. The chance of one strategy meeting your objectives long term is pretty low, but a portfolio of strategies has a much greater chance. You can get better returns and reduce drawdown. Much fewer number of days in drawdown as you diversify the portfolio.