Well I agree that a trend trading approach will work when markets are trending and that a volatility expansion strategy will work when markets are volatile. However, what happens to a trend trading strategy when markets stay volatile for a very long time ? They lose money and a lot of it. I think the problem is that there is no "one size fits all" approach and the key is knowing what phase a market is in and I doubt most long term funds have the ability to switch as they tend to stick with one approach.

What would you suggest as a way forward ?