Upcoming
This paper is in progress. The summary below previews what it will cover; the working paper and a less-technical write-up will be published here when ready.
Investing — as distinct from speculation — means holding a portfolio whose positive drift is expected to dominate its volatility over the relevant horizon.
The Sharpe-One (S1) strategy operationalizes this by constructing each annual savings cohort as an independent sub-portfolio. The equity allocation for each cohort is set so that cumulative drift equals cumulative volatility over its remaining horizon, yielding a sub-portfolio Sharpe ratio of one. The result is a horizon-aware glidepath in which every portfolio dollar carries exposure appropriate to the time it actually has to work.