What is Cash Trigger (Carter)?

Simple trend-following rule using SPY's 200-day SMA as regime filter. Above SMA holds 100% equities; below SMA rotates to the best-performing bond by 3-month return from a four-ETF universe. Monthly rebalancing.

Who created the Cash Trigger (Carter) strategy?

Cash Trigger (Carter) was developed by David Alan Carter. It is based on Carter, D.A. The Stock Market Cash Trigger.

What is the historical return and maximum drawdown of Cash Trigger (Carter)?

Backtested from 1987-12-31 to 2026-07-03, Cash Trigger (Carter) returned 11.6% CAGR with a -26.3% maximum drawdown and a Sharpe ratio of 1.00. Past performance does not guarantee future results.

How often is Cash Trigger (Carter) rebalanced?

Cash Trigger (Carter) is rebalanced monthly. BestFolio publishes the updated allocation signal each period.

Is Cash Trigger (Carter) a tactical asset allocation strategy?

Yes. Cash Trigger (Carter) is a tactical asset allocation (TAA) strategy: it adjusts its holdings based on market signals each period rather than holding a fixed allocation.

Cash Trigger (Carter) Strategy by David Alan Carter

Name: Cash Trigger (Carter), Backtest Time Series
Creator: BestFolio
License: https://creativecommons.org/licenses/by-nc/4.0/

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 2026-07-03 (38.5 years): 11.6% 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 2026-07-03
CAGR: 11.6%
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.

Cash Trigger (Carter): frequently asked questions

What is Cash Trigger (Carter)?: Simple trend-following rule using SPY's 200-day SMA as regime filter. Above SMA holds 100% equities; below SMA rotates to the best-performing bond by 3-month return from a four-ETF universe. Monthly rebalancing.
Who created the Cash Trigger (Carter) strategy?: Cash Trigger (Carter) was developed by David Alan Carter. It is based on Carter, D.A. The Stock Market Cash Trigger.
What is the historical return and maximum drawdown of Cash Trigger (Carter)?: Backtested from 1987-12-31 to 2026-07-03, Cash Trigger (Carter) returned 11.6% CAGR with a -26.3% maximum drawdown and a Sharpe ratio of 1.00. Past performance does not guarantee future results.
How often is Cash Trigger (Carter) rebalanced?: Cash Trigger (Carter) is rebalanced monthly. BestFolio publishes the updated allocation signal each period.
Is Cash Trigger (Carter) a tactical asset allocation strategy?: Yes. Cash Trigger (Carter) 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 (1987-12-31 to 2026-07-03)

Metric	Cash Trigger (Carter)
Compound Annual Growth Rate (CAGR)	11.6%
Maximum Drawdown	-26.3%
Sharpe Ratio	1.00
Sortino Ratio	1.46
Annualized Volatility	13.8%
Calmar Ratio	0.44
Total Return	6715.9%
Backtest Period	38.5 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

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