We track more than 60 tactical asset allocation strategies. In this post we look at which of those strategies are most often recommended by common portfolio optimization techniques, and why strategies that “play well with others” are not always the best strategies. First, a little background for the uninitiated: Members can combine the strategies we […]
TAA Strategies
Paul Novell’s Bond-COMP Tactical Bond Strategy
This is a test of a tactical bond strategy from Paul Novell of Investing for a Living. It rotates between credit bond ETFs and defensive assets based on the same rules as his popular SPY-COMP strategy. Backtested results from 1970 follow. Results are net of transaction costs – see backtest assumptions. Learn about what we […]
Financial Mentor’s All-Weather Quad Momentum
This is an independent test of the tactical strategy “All-Weather Quad Momentum” (AWQM) from Todd Tresidder of FinancialMentor.com. Many of our members came to us from Financial Mentor, so it’s fitting that we add a strategy to our platform that demonstrates his approach to asset allocation. Backtested results from 1970 follow. Results are net of […]
“Accelerating Dual Momentum” Redux: Longer History, Tempered Expectations
This is a follow up to a strategy we’ve covered previously: Accelerating Dual Momentum (ADM) from EngineeredPortfolio.com. See our first test of ADM, which includes a description of the strategy rules and our own analysis of the strategy. Here we’ve extended our test by 20 years to include a less effective era for this strategy. […]
Testing a Risk Premium Value Strategy
This is a test of a Risk Premium Value strategy (RPV) that allocates to major US asset classes based on current risk premium valuations relative to historical norms. Readers will note the similarity between RPV and other related strategies, such as CXO Advisory’s SACEVS. Backtested results from 1987 net of transaction costs follow (see backtest […]
Keller’s Resilient Asset Allocation
This is a test of the latest tactical strategy from Dr. Wouter Keller: Resilient Asset Allocation (RAA). RAA is intended to be a low turnover strategy, only shifting from a balanced risk portfolio to a defensive portfolio during the most potentially bearish of times. Backtested results from 1970 follow. Results are net of transaction costs […]
Aspect Partners’ Risk Managed Momentum
This is an independent test of Aspect Partners’ flagship tactical asset allocation strategy Risk Managed Momentum (RMM). By tactical standards, RMM is a very active, very aggressive strategy. It has done an excellent job navigating this difficult year so far. Backtested results from 1970 follow. Results are net of transaction costs (see backtest assumptions). Learn […]
Momentum Turning Points
This is a test of two recent papers: Momentum Turning Points and Breaking Bad Trends. Learn more about what we do and follow 50+ asset allocation strategies like these in near real-time. Successful trend-following strategies must balance the “speed” of the trading signal. If the signal is too slow, the strategy will not adapt quickly […]
Paul Novell’s Flagship Strategy SPY-COMP
This is a test of the flagship proprietary strategy from Paul Novell’s Investing for a Living. Paul has been kind enough to share his strategy rules to allow for independent verification of his results. SPY-COMP is like Growth-Trend Timing and a handful of other tactical strategies we track, in that it considers trends in both […]
A Quick Note on a Small Change to Meta
We had mentioned this in passing on previous posts, but never expounded upon it here on the blog. We thought it would be too boring and down in the weeds. But the emails just keep coming (we forgot our members tend to be as analytically-minded as we are), so here are the details… Meta is […]