For next month’s allocations, I will be introducing another trading strategy. It is derived from the current dmSingle strategy. This strategy has about a twelve-year historical backtest. This strategy attempts to be in the right market index at the right time and into a risk-off strategy if the market indexes are not performing well.
28.26% CAGR,
1.19 Sharpe Ratio
0.05 US Mkt Correlation
The new one is called dmSingle2. This new strategy should be traded as an alternative to dmSingle because in many ways is similar to its original rules. I consider dmSingle2 to be more conservative and has a much longer historical backtesting period of 19 years, which includes the 2008/09 financial crises.
Normally I would like all the statistics of the original strategy. But, it didn’t include trading during the financial crisis sell-off. I will add the new strategy to our strategy matrix. Look at how it performs combined with the other strategies to determine how much you want to allocate to this strategy. I believe the results will be more meaningful when combined with the Model strategies which have historical test periods of up to 49 years.