Alpha-One Momentum
Alpha-One Momentum is a tactical asset allocation strategy reviewed on a weekly cadence. Its hypothetical backtest runs through 2026-08-24. BestFolio supplies the public rule or approach and backtest context; current signals, allocations, and paid interactive data remain restricted to Pro access. The recorded 2026-04 publication or construction boundary separates pre-publication simulation from later market observations under fixed rules; all returns remain hypothetical. Users review each scheduled signal and place any resulting trades in their own brokerage. BestFolio does not execute trades or provide personalized investment advice.
- Cadence
- Weekly
- Backtest data through
- 2026-08-24
- History boundary
- The recorded 2026-04 publication or construction boundary separates pre-publication simulation from later market observations under fixed rules; all returns remain hypothetical.
- Rule / approach
- 1. Universe: MGK, VUG, IWY, FPX, ONEQ, MDY, USMV, SPLV, BNDX, BND, SHV, IEI 2. Every Friday at close, rank the 12 universe ETFs by return over 4 lookback periods (1/3/6/9 months) 3. Composite score = weighted sum of ranks across periods…
- BestFolio supplies
- the public rule or approach and backtest context; current signals, allocations, and paid interactive data remain restricted to Pro access
- Customer action
- Review each scheduled signal and place any required trades in your own brokerage; BestFolio does not execute orders.
- Costs and exclusions
- net of a modeled one-way transaction cost (10 bps, scaled up to 3x under stress); taxes, fund-expense drift, or market impact are not modeled
- Freshness
- The latest available backtest ends 2026-08-24. A run timestamp is not exposed here, so no stronger freshness claim is made.
- Next expected action
- This Friday (MOC); scheduled 2026-08-28 at 09:30 ET. Review the published signal before placing any trade.
Alpha-One Momentum at a glance
Alpha-One Momentum is a tactical asset allocation (TAA) strategy by Bill Sadek across US Mega-Cap Growth, US Large-Cap Growth, IPO Factor, Nasdaq Composite, rebalanced weekly. Backtested 1993-08-20 to 2026-08-24 (32.9 years): 11.2% CAGR, 0.93 Sharpe, -21.5% max drawdown, 13.9% volatility.
- Type
- Tactical (TAA)
- Author
- Bill Sadek
- Rebalancing
- Weekly
- Period
- 1993-08-20 to 2026-08-24
- CAGR
- 11.2%
- Sharpe
- 0.93
- Max Drawdown
- -21.5%
- Volatility
- 13.9%
Alpha-One Momentum — Tactical Asset Allocation Strategy
Bill Sadek's Alpha-One Momentum is a focused, winner-take-all WEEKLY Dual Momentum strategy that picks the single strongest ETF from a 12-asset universe each Friday. Designed to complement longer-term monthly TAA models by responding more quickly to leadership shifts, while the winner-take-all design avoids the performance dilution typical of multi-position portfolios.
The universe spans five risk-on sleeves (large-cap growth: MGK, VUG, IWY; IPO tilt: FPX; Nasdaq: ONEQ; mid-cap: MDY; low-volatility: USMV, SPLV) and four risk-off sleeves (international bonds: BNDX; US core bonds: BND; ultra-short Treasury: SHV; intermediate Treasury: IEI).
Alpha-One Momentum: frequently asked questions
- What is Alpha-One Momentum?
- Bill Sadek's weekly Dual Momentum strategy. Each Friday, ranks a 12-ETF universe (MGK, VUG, IWY, FPX, ONEQ, MDY, USMV, SPLV, BNDX, BND, SHV, IEI) by a composite of 1/3/6/9-month rank-order momentum. Holds the top asset 100% only if it beats VWEHX (Vanguard High-Yield Corporate Bond) on the same composite metric, otherwise moves to cash (BIL). Exact port of Bill's Portfolio Visualizer model.
- Who created the Alpha-One Momentum strategy?
- Alpha-One Momentum was developed by Bill Sadek. It is based on Contributed by Bill Sadek (2026-04). Exact specification: weekly Dual Momentum with rank-order composite across 1/3/6/9-month lookbacks, VWEHX as absolute momentum benchmark..
- What is the historical return and maximum drawdown of Alpha-One Momentum?
- Backtested from 1993-08-20 to 2026-08-24, Alpha-One Momentum returned 11.2% CAGR with a -21.5% maximum drawdown and a Sharpe ratio of 0.93. Past performance does not guarantee future results.
- How often is Alpha-One Momentum rebalanced?
- Alpha-One Momentum is rebalanced weekly. BestFolio publishes the updated allocation signal each period.
- Is Alpha-One Momentum a tactical asset allocation strategy?
- Yes. Alpha-One Momentum is a tactical asset allocation (TAA) strategy: it adjusts its holdings based on market signals each period rather than holding a fixed allocation.
Backtest Performance (1993-08-20 to 2026-08-24)
| Metric | Alpha-One Momentum |
|---|---|
| CAGR | 11.2% |
| Max Drawdown | -21.5% |
| Sharpe | 0.93 |
| Sortino | 1.52 |
| Volatility | 13.9% |
| Calmar | 0.52 |
| Total Return | 3133.5% |
| Backtest Period | 32.9 years |
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- weekly
- Variants
- 2
- Author
- Bill Sadek
- Source
- Contributed by Bill Sadek (2026-04). Exact specification: weekly Dual Momentum with rank-order composite across 1/3/6/9-month lookbacks, VWEHX as absolute momentum benchmark.
Asset Classes
- US Mega-Cap Growth
- US Large-Cap Growth
- IPO Factor
- Nasdaq Composite
- US Mid-Cap
- Low Volatility Factor
- Total International Bonds
- US Core Bonds
- Ultra-Short Treasury
- Intermediate Treasuries
Further reading
New to this approach? Read what tactical asset allocation is and how it works.
Holding Alpha-One Momentum alongside another strategy? Use the free portfolio overlap calculator to see how much of the two portfolios actually differs.
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