The unpredictable nature of Donald Trump will likely heighten the market's volatility in the coming year. But for long-term investors, that is not necessarily a bad thing, said Paul Bouchey, CIO of Parametric. Bouchey offers three ideas on how to "make friends with volatility", the first of which is to create a rebalancing plan and stick to it. Bouchey also suggests using options to manage volatility, whether it be selling calls or buying protective puts. He said the options market tends to overestimate future volatility, which translates directly into higher prices for both put and call options. Finally, Bouchey said investors seeking to dampen volatility in their portfolios should be sure to harvest tax losses. It is common practice to harvest tax losses at the end of the calendar year to attempt to offset realized capital gains. However, this process can be systematized, according to Bouchey.