The 12% Solution (Carter) — Tactical Asset Allocation Strategy
Two-sleeve monthly rotation: 60% in the best-momentum equity ETF (or cash if none outperforms) and 40% in the stronger bond ETF. Uses 3-month return lookback across US large, mid, small cap, and Nasdaq. Monthly rebalancing.
Backtest Performance (1992-02-28 to 2026-04-07)
| Metric | The 12% Solution (Carter) |
|---|---|
| Compound Annual Growth Rate (CAGR) | 11.1% |
| Maximum Drawdown | -31.6% |
| Sharpe Ratio | 0.93 |
| Sortino Ratio | 1.24 |
| Annualized Volatility | 12.0% |
| Calmar Ratio | 0.35 |
| Total Return | 3497.5% |
| Backtest Period | 34.1 years |
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- monthly
- Risk Level
- moderate
- Variants
- 1
- Author
- David Alan Carter
Categories
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