Tactical Asset Allocation (TAA) strategies dynamically allocate to broad asset classes like stock indices (ex. SPY), bond indices (AGG), and gold (GLD). Unlike a traditional buy & hold portfolio, TAA strategies are able to increase allocation to assets expected to outperform and reduce allocation to those expected to underperform, to enhance returns. They tend to trade once a month or less, capturing broad market trends and ignoring day-to-day noise, which makes them easier to follow for traders who refuse to be glued to a monitor all day.
Below we show just some examples of the TAA strategies included in the full list of strategies that we track.
We track dozens of the industry’s very best tactical asset allocation strategies, sourced from books, academic papers and other publications. Organizing all of these different models, analyzing them on a level playing field, and then implementing them in the real-world would be unmanageable. That’s where we come in.
Our platform lets members analyze each of these TAA strategies with thorough, up-to-date backtests. Members can then combine strategies with the click of a button to create their own custom model portfolio, follow their model portfolio in near real-time, and receive notifications when a change is likely to occur today.
All of the strategies that we track are both quantitative and systematic, meaning well-defined mathematical rules govern exactly when and what to trade. We assume that all strategies trade at the market close (read more about when we trade), and that trades are executed using large, liquid ETFs (read more about what we trade), but because of the longer-term nature of the strategies that we track, most have performed comparably trading at similar times (ex. the next day’s open) or using similar assets (ex. certain mutual funds).