UISx3 w/o GLD/UGLD – is the backtesting up to date?

[brucealder]

Hi Alex, Frank, et al.,
With the removal of UGLD from UISx3 (and the subsequent addition/removal of GLD…leaving only SPXL and TMF), is the backtesting fully reflective of the new SPXL/TMF strategy (i.e., sans UGLD/GLD)?

The only reason I ask is that with the removal of UGLD/GLD the historical CAGR didn’t seem to change at all, it stayed essentially the same. I certainly hope that UISx3 continues to perform the same, even without UGLD/GLD, but wanted to check and confirm that I was understanding how the change was incorporated into the historical performance.

Thanks!
Bruce

[Patrick @ Logical-Invest]

Yes it is current. The strategy replaces UGLD with a triple allocation of GLD, which in some cases will require using leverage in your account when the total allocations exceed 100%.

[brucealder]

Hi Patrick,
With the Sept 1st allocation for UISx3 the GLD position was removed in order to avoid using leverage in the account, leaving only SPXL and TMF. Is the plan to go back to including GLD?

Either way, if the backtesting continues to be updated with each allocation, then we should be good. Is it confirmed, then, that whether the mix is SPXL/TMF or SPXL/TMF/GLD that the backtesting is fully updated and reflective for each mix?
Thanks!
Bruce

[Patrick @ Logical-Invest]

Yes, the backtest will be updated with the strategy. The strategy has not changed since the July update. GLD is still part of the strategy, it just did not receive an allocation in the current period. It may reappear in future allocations and will continue to be leveraged when it does.

Thanks,
Pat

[DWoods]

Looking ahead into next month, appears the allocations for gold will roar back into the mix. The shocker is what Quant is forecasting for stock allocations. I will be anxiously awaiting the actual allocation forecast later this week.

[brucealder]

Thanks Pat, that clarification is super helpful and makes perfect sense.
Thanks,
Bruce

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