Alpha Bonds
Fixed Income Portfolio
Methodology
Tactical Momentum Strategies. Each of the four 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. Candidate ETFs are defensive ETFs vs equity ETFs.
Construction
Selections are made from a universe of over 48 ETFs that include a wide range of bond and Treasury categories, gold, and the S&P 500 index. The Strategy includes an integrated Bear Market Strategy, which limits the selection to a less aggressive fund universe.
Application
This Portfolio is designed for the Fixed Income 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.