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Monday, August 31, 2015

September 2015 Allocations

The Simple GMR drawdown is now at a historic -22%, MC GMR -29% and GTCR -37%! This really highlights the importance of a forward-walk/paper-trading to ensure the strategies work in real life and not only when backtested. On a more positive note, Simple Pair Switching switched the allocation to bonds 4 days before the crazy action in the S&P 500 started. TLT is currently down -1.8% from the August 13 switch date, and SPY -5.3%. And as the Modified Dual Momentum strategy indicates, it is currently very hard to find any asset classes that are generating better returns than cash/short term bonds (SHY).



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