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 1992-10-30 to 2026-04-24 (33.4 years): 11.9% CAGR, 0.87 Sharpe, -26.3% max drawdown, 14.1% volatility.

Type
Tactical (TAA)
Author
David Alan Carter
Rebalancing
Monthly
Risk
Moderate
Period
1992-10-30 to 2026-04-24
CAGR
11.9%
Sharpe
0.87
Max Drawdown
-26.3%
Volatility
14.1%

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 (1992-10-30 to 2026-04-24)

MetricCash Trigger (Carter)
Compound Annual Growth Rate (CAGR)11.9%
Maximum Drawdown-26.3%
Sharpe Ratio0.87
Sortino Ratio1.11
Annualized Volatility14.1%
Calmar Ratio0.45
Total Return4191.5%
Backtest Period33.4 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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