Alpha 80:20
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 80:20 Portfolio is a blended set of portfolios including: 10% Alpha Bonds, 25% Alpha Risk Mitigation, 30% Alpha Global, and 35% Alpha Sectors. The Portfolio will never allocate more than 80% of its assets to equities. However, both Dual Defense components employ bonds and commodities that at times reduces equities well under 80%.
Application
This Portfolio is designed for the Growth 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.