From the next strategy email on, the Bond Rotation Strategy will also use adaptive ETF allocation, to make is more suitable as IRA or 401k Investment Strategy. This new technique allows a 30% higher Sharpe (return to risk) ratio. Together with this change we have also changed the ETF selection from the old: AGG – iShares Core Total US Bond (4-5yr) BOND – PIMCO Total Return ETF CWB – SPDR Barclays Convertible Bond HYLD – AdvisorShs Peritus … Read more
This strategy backtest uses the Vanguard VFINX/VUSTX index funds as a proxy to the SPY/TLT ETFs. With these Vanguard funds I have made a 20 year backtest for the UIS strategy. 20 years Strategy backtest of our Universal Investment Strategy I made this strategy backtest, because many subscribers asked for it, and because with these two Vanguard funds, this is also one of the only strategies which can be backtested for such a long period. In … Read more
On November 2013 I published the first SA article on the Bond Rotation Strategy (BRS) as excelent diversifier for a 401k Investment Portfolio. Now, 15 months later, I am presenting an important update for this strategy with adaptive allocation. Even though the old strategy has done well (see charts here: https://logical-invest.com/strategy/bond-rotation-sleep-well/), I think it is very important to constantly validate and improve any investment strategy. Markets change, ETFs change even we ourselves grow and learn. Especially … Read more
By request of several followers, we have now included the version with 3x leverage of the Universal Investment Strategy using synthetic SPXL and TMF data from 2002. Portfolio Builder now with leverage We’re about to publish a full article on this exciting option for this weekend, but want to pre-alert you about this upcoming adition. While this is a very aggressive strategy with leverage, it blends very nicely with a 10%-20% allocation into a portfolio … Read more
Summary:
-Aggressive leveraged version of our previously published Universal Investment Strategy
-Variable SPY-TLT allocations dynamically adapted to the market conditions.
-45% annual return with a Sharpe Ratio of 1.3 since 2002.
Due to its simplicity and low correlation to the S&P 500, there is a continued interest in the UIS version that uses 3x leveraged ETFs: ETF SPXL (Direxion Daily S&P 500 Bull 3X Shares ETF) and TMF (Direxion Daily 30-Year Treasury Bull 3x Shares ETF). Following the suggested nomenclature by Al from AAII SV – and to honor their interest, we call this version “Hell on fire”, which alludes to the high risk/return profile of the strategy. We will show ways to blend this strategy in a well-balanced and risk-optimized portfolio as to overcome the generally negative perception of private investors towards leveraged ETF.
With a lot of hype about FinTech these days, we´re happy to have received a positive review from one of the most important FinTech blogs. What is FinTech? Here the definition of FinTech by Investopedia: Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century. Originally, the term applied to technology applied to the back-end of established consumer and trade financial institutions. A review of Logical Invest by … Read more
Summary of World Country Top 4 ETF rotation strategy • The World Country Top 4 ETF rotation strategy is a strongly momentum driven strategy creating high returns. • The strategy profits from a maximum global diversification. • With a 20-year CAGR of 20.7% the strategy has a much lower volatility and lower risk than an S&P 500 investment. In my last articles I described various momentum ETF rotation strategies with variable allocations using our maximum Sharpe … Read more
This is the monthly monthly Logical-Invest newsletter for June 2015. From now on this newsletter will replace the individual comments for the single strategies. The newsletter includes a strategy performance overview which can help you to switch between strategies. The same table is available if you login to your logical invest account at “My Account” and select the strategy performance menu. The table on the website is a dynamic table and will be updated every day. This way … Read more
This is the monthly Logical-Invest newsletter for July 2015. Strategy performance overview: symbol close year to date % ▴ 3 month % 1 month % 1 day % 60 day volatility 60 day correlation 3 month Sharpe 12 month Sharpe 36 month Sharpe WORLD-TOP4 284.82 8.27 0.85 -1.21 0.68 12.57 0.69 0.43 3.01 3.24 MYRS 615.56 5.11 1.02 -1.80 0.53 14.39 0.69 0.42 1.11 2.85 GMRS 4296.50 3.77 -3.35 -1.76 0.12 8.81 0.86 -2.20 -0.06 1.65 … Read more
Intelligent Algorithms run two prallel sub-strategies.
Meta- layer chooses between the two sub-strategies based on current market conditions.
Variable allocation to Treasuries provides protection from large drawdowns.
This strategy is a good fit for investors that want to invest intelligently in the U.S. equity market as well as for stock-pickers looking for a rules-based growth strategy.
The strategy can also complement our existing strategies and can work well with our more conservative strategies like BRS (bond rotation), the BUG or with non-U.S. equity strategies like World Top 4.