STRATEGY BLENDING
Combine strategies into a single portfolio. See the math.
Pick 2 to 20 strategies, set custom weights, and see the blended equity curve, drawdowns, walk-forward metrics, and per-strategy contribution. Diversification only works when the strategies actually disagree at the right times.
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BestFolio Smart Blending interface: select strategies and pick a blending method (Equal Weight, Risk Parity, Min Variance, Max Sharpe).
- Up to 20 strategies
- Mix tactical and fixed in any combination. Custom weights or one of four optimization methods.
- Four blending methods
- Equal weight, risk-balanced, volatility-targeted, or maximum risk-adjusted return.
- Per-strategy contribution
- See where each strategy added or subtracted return and where the diversification benefit came from.
What it is
Blending combines multiple strategies into one portfolio. Each strategy keeps its own monthly signals, but your overall allocation is the weighted sum. The point is that any one strategy has bad regimes; a thoughtful blend smooths the equity curve without giving up much CAGR. BestFolio computes the blended walk-forward result so you can see what the combination would have done out of sample, not just on a fitted window.
Free vs Pro
Free
- ✓Blend any 2 of the 6 free strategies
- ✓Custom weights with live equity curve
- ✓Basic blended metrics: CAGR, max drawdown, Sharpe
Pro
- ✓Blend any of 47+ strategies
- ✓Up to 20 strategies in one portfolio
- ✓Four blending methods (equal, risk-balanced, vol-targeted, max risk-adjusted)
- ✓Per-strategy contribution analysis
- ✓Walk-forward on the blended portfolio
- ✓Correlation matrix for blend candidates
Strategies that use this
HAA (Hybrid Asset Allocation)
Tactical, recession-aware. Common blend anchor.
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Permanent Portfolio
Fixed allocation, low volatility. Diversifies tactical.
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GEM (Global Equities Momentum)
Pure momentum; pairs well with risk-balanced strategies.
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RP Gold+SCV
Risk parity with gold and small-cap value.
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Golden Butterfly
Static, balanced. Anchors a tactical blend.
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VAA (Vigilant Asset Allocation)
Offensive / defensive switching for volatility cuts.
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Frequently asked questions
Why blend strategies instead of picking the best one?+
Every individual strategy has regimes where it underperforms. Picking one means accepting its worst windows. Blending keeps you in the market with multiple uncorrelated rules, so when one strategy is in drawdown another is often holding up. Smoother equity curve, similar long-term CAGR.
How many strategies should I blend?+
More than 1 and fewer than 10 in practice. Diversification benefit drops off after about 5-7 strategies if they have any correlation. Beyond that you're adding execution complexity without much variance reduction.
What is per-strategy contribution analysis?+
It decomposes the blended return month by month into the contribution from each strategy. Useful for spotting which strategy is doing the heavy lifting in good years and which one is keeping you whole in bad years.
Do the four blending methods produce different signals?+
They produce different weights, not different signals. Each strategy still emits its own monthly allocation; the methods determine how those allocations get weighted into the portfolio.
Is blending free or Pro?+
Blending the 6 free strategies is free. Blending across the full catalog and using the four optimization methods is Pro.
Related research
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