There’s a actual argument on the opposite facet. Uniform guidelines are easy, and easy guidelines are adopted.
A differentiated framework introduces judgment on the calibration stage, and judgment is the place self-discipline normally erodes. A single portfolio-wide cease that’s really honored might effectively outperform a classy framework that’s quietly deserted within the second tough quarter.
That could be a honest objection, and it units the true take a look at. Differentiation is definitely worth the added complexity provided that the foundations are written down earlier than entry, calibrated to one thing observable slightly than to conviction, and left alone afterward.
If a framework can not survive these three circumstances, uniformity is the higher selection.
The reply to a miscalibrated rule is to not abandon all guidelines. It’s to calibrate them to what every place is definitely for, and to the way it really behaves.
