Discover a world of crisis-tested momentum investing strategies as a source of wealth creation and income.
Holding four out of eight asset classes using a hybrid of dual momentum with a canary asset.
Holding three out of six asset classes showing the strongest momentum.
Using dual momentum to select one out of two asset classes from four modules (equity, credit, real estate and stress).
Holding two out of four developed markets with the strongest momentum.
Relative strength is used to rotate among asset classes using value and size factors.
Relative strength is used to rotate among industry sectors.
Old-school buy-and-hold portfolio diversification where asset allocation is greater than the sum of its parts.
A new take on the old classic "Sell in May and go away" applied to holding defensive sectors during the lull mid-year months while holding offensive sectors during the months in which equity markets tend to outperform.
More Resistant To Market Stress
Balanced for Risks and Opportunities
Exposure To Market Opportunities
Momentum Investing strategies invest in broad asset classes like stock indices (ex. SPY), bond indices (BND), or gold (GLD). Momentum Investing strategies tend to trade once a month or less, capturing major market trends and ignoring the day-to-day ups and downs. That makes them easier to follow for traders who refuse or are unable to be glued to a screen all day.
Unlike traditional buy & hold strategies, Momentum Investing aims to maximize returns and minimize losses by dynamically increasing/decreasing allocation to assets expected to outperform/underperform. Momentum Investing differs from other active strategies in that the concepts underpinning momentum (mostly long-term momentum and trend-following) have proven effective for decades, and in some cases, for centuries.
In order to provide an apples-to-apples comparison between strategies, we make certain simplifying assumptions that all backtests share. We assume that:
Please read the disclaimer about back testing results.
All of our strategies include both trades and rebalances.
A “trade” is a change in the allocation of a strategy.
Over time, the strategy will drift from the initial allocation due to differences in each asset’s performance. A “rebalance” is done to bring the strategy back to that optimal allocation, even if the optimal allocation remains unchanged.
We compare our strategy performance to the US 60/40 benchmark. We define the 60/40 as a 60% investment in the S&P 500 (via SPY), 40% investment in intermediate-term US Treasuries (IEF), rebalanced monthly.
Why do we use the 60/40 as our default benchmark?
First, the 60/40 is the most commonly used benchmark in the US asset management industry. Second, it’s been a tough hurdle to beat, especially on a risk-adjusted basis. That’s due to (a) the long-term outperformance of US stocks over the rest of the world, and (b) strong US Treasury performance over the last 40+ years due to consistently declining interest rates.
fundalytix is not a trading platform or robo-advisor. fundalytix is somewhere in the middle in the best way possible. fundalytix is a small investment boutique with automated investing with a high level of customisation for its clients. Once we build your portfolio, our platform does the rest. This approach keeps cost down which results in higher growth and net returns.
