Alpha 60:40 Green
Dual Defense Portfolio
Methodology
Tactical Momentum Strategies. Each of the 12 underlying strategies uses a rules-based tactical momentum algorithm to evaluate a set of candidate ETFs at each month-end, wherein the trend leader of each is selected to be a member of the model’s Portfolio for the subsequent month. In Bear markets candidates are defensive ETFs vs equity ETFs.
Construction
The 60:40 Green Portfolio is a blended combination of other portfolios including: 32% Alpha Bonds, 20% Alpha Risk Mitigation, and 48% Alpha Green. The Portfolio will never allocate more than 60% of its assets to equities. However, both Dual Defense components employ bonds and commodities that at times reduces equities well under 60%.
Application
This Portfolio is designed for the Moderate portions of an investment portfolio.
Note: Momentum is not always present in equity markets. Economic, bureaucratic, and social responses to inflation, politics, and pandemics can disrupt momentum in otherwise orderly markets that is required to achieve profitable trading.