Cash Trigger (Carter) at a glance
Cash Trigger (Carter) is a tactical asset allocation (TAA) strategy by David Alan Carter across US Equity, Long Treasuries, High Yield Bonds, Municipal Bonds, rebalanced monthly. Backtested 1987-12-31 to 2026-06-08 (38.4 years): 11.7% CAGR, 1.00 Sharpe, -26.3% max drawdown, 13.8% volatility.
- Type
- Tactical (TAA)
- Author
- David Alan Carter
- Rebalancing
- Monthly
- Risk
- Moderate
- Period
- 1987-12-31 to 2026-06-08
- CAGR
- 11.7%
- Sharpe
- 1.00
- Max Drawdown
- -26.3%
- Volatility
- 13.8%
Cash Trigger (Carter) — Tactical Asset Allocation Strategy
David Alan Carter's Cash Trigger uses SPY's 200-day SMA as a binary regime filter. Above → 100% SPY. Below → best bond ETF by 3-month return from TLT, JNK, MUB, SHY.
Backtest Performance (1987-12-31 to 2026-06-08)
| Metric | Cash Trigger (Carter) |
|---|---|
| Compound Annual Growth Rate (CAGR) | 11.7% |
| Maximum Drawdown | -26.3% |
| Sharpe Ratio | 1.00 |
| Sortino Ratio | 1.46 |
| Annualized Volatility | 13.8% |
| Calmar Ratio | 0.44 |
| Total Return | 6801.8% |
| Backtest Period | 38.4 years |
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- monthly
- Risk Level
- moderate
- Variants
- 1
- Author
- David Alan Carter
- Source
- Carter, D.A. The Stock Market Cash Trigger
Asset Classes
- US Equity
- Long Treasuries
- High Yield Bonds
- Municipal Bonds
- Short-Term Treasuries
Categories
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