Chimeric Asset Allocation
Score 10 offensive assets on 9 signals: total return and path efficiency over 3/6/12 months, price vs 3/6/12-month averages. Backtest max drawdown: -52.5%.
Strategy & methodology
Score 10 offensive assets on 9 signals: total return and path efficiency over 3/6/12 months, price vs 3/6/12-month averages; Divide each signal by (1 + correlation to the equal-weight universe), then percentile-rank and average the 9…
- Strategy type:
- Tactical asset allocation
- Rebalance frequency:
- Monthly
- Original publication:
- Not recorded. All results are backtest simulations.
- Data through:
- Backtest data through 2026-10-01.
Simulated history
- Full history, since 1982
- 30.8% a year, worst fall -52.5% (Jul 6, 2001, a simulated 3x)
- Since EURL launched (Jan 22, 2014)
- 23.5% a year, worst fall -31.7% (Apr 8, 2025)
Still partly simulated until Nov 2014: PDBC is reconstructed before its own launch.
Stand-in funds and until when (11)
- PDBC: DBC before Nov 7, 2014
- EURL: simulated 3x VGK before Jan 22, 2014
- TQQQ: simulated 3x QQQ before Feb 11, 2010
- UPRO: simulated 3x SPY before Jun 25, 2009
- TMF: simulated 3x TLT before Apr 16, 2009
- EDC: simulated 3x EEM before Dec 30, 2008
- UGL: simulated 2x GLD before Dec 3, 2008
- TNA: simulated 3x IWM before Nov 19, 2008
- ERX: simulated 3x XLE before Nov 19, 2008
- EDV: TLT x1.5 before Dec 13, 2007
- IEF: VFITX before Jul 26, 2002
Before these dates the backtest uses a stand-in, not the fund itself, so the results over those stretches show how the rules would have behaved, not what the fund returned.
Research data and disclosures
Score 10 offensive assets on 9 signals: total return and path efficiency over 3/6/12 months, price vs 3/6/12-month averages. Backtest max drawdown: -52.5%. This is a tactical asset allocation strategy. BestFolio supplies the public rule or approach and backtest context; current signals, allocations, and paid interactive data remain restricted to Pro access. Users review the published signal and place any resulting trades in their own brokerage. Displayed returns remain hypothetical and do not represent a customer's brokerage record. The facts above show how current the data is.
- BestFolio supplies
- The monthly signal email and this strategy page; current signals and email alerts require Pro access.
- Customer action
- Review the published signal and place any required trades in your own brokerage. BestFolio does not execute orders.
- Costs and exclusions
- Backtests are 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. No tax, no slippage beyond the stated cost. Methodology limitations
Published result: Engine drift-until-flip-v1, data version fda3026d, published 2026-10-01
Is Chimeric Asset Allocation still working in 2026?
Chimeric Asset Allocation returned 26.46% over the trailing 12 months and 120.28% over 36 months through 2026-10-01, compared with a full-backtest annualized return of 30.82%. Its full-backtest maximum drawdown was -52.48%. The full sample contains 11383 daily NAV observations from 1982-02-26. These are model results, not investor account returns or a promise. As of 2026-10-01 it is -12.66% below its high-water mark of 2026-06-02, 4 months ago, and its longest run below a previous high was 3.7 years. Recent returns do not establish that the strategy will keep working.
| Period | Return | CAGR | Max drawdown | Observations | Dates |
|---|---|---|---|---|---|
| Trailing 12 months | 26.46% | Not annualized | -24.80% | 252 | 2025-10-01 to 2026-10-01 |
| Trailing 36 months | 120.28% | Not annualized | -31.70% | 754 | 2023-09-29 to 2026-10-01 |
| Full backtest | 15978126.00% | 30.82% | -52.48% | 11383 | 1982-02-26 to 2026-10-01 |
Last verified
Common questions about these results
Are these live investor returns?
No. These are the latest model NAV results from the published backtest. A recent date alone does not make a result an independently observed live record. Investor costs, taxes and execution can differ.
Why can a strategy lag for a year?
A tactical model can hold defensive assets during a rally or change positions during reversals. A short window can differ substantially from its full history. Compare cumulative returns over matching dates and inspect drawdowns as well.
How long has it spent below a previous high?
Its last high-water mark was 2026-06-02, 4 months before 2026-10-01, and it is -12.66% below that level now. The longest run below a previous high in the full backtest was 3.7 years. Recovering from a drawdown can take years, and a strong trailing return does not mean a past high has been regained.
Where can I check the signals behind these results?
The Signals tab on this page lists each dated model decision for the selected variant; for Pro strategies they are visible to Pro members. The methodology page explains the backtest assumptions.
Chimeric Asset Allocation at a glance
Chimeric Asset Allocation is a tactical asset allocation (TAA) strategy by u/Separate-Ad-9633 (r/LETFs) across US Equity (3x), International Equity (3x), Emerging Markets (3x), Small Cap (3x), rebalanced monthly. Backtested 1982-02-26 to 2026-10-01 (44.6 years): 30.8% CAGR, 1.06 Sharpe, -52.5% max drawdown, 28.4% volatility.
- Type
- Tactical (TAA)
- Author
- u/Separate-Ad-9633 (r/LETFs)
- Rebalancing
- Monthly
- Risk
- Aggressive
- Period
- 1982-02-26 to 2026-10-01
- CAGR
- 30.8%
- Sharpe
- 1.06
- Max Drawdown
- -52.5%
- Volatility
- 28.4%
Chimeric Asset Allocation — Tactical Asset Allocation Strategy
Chimeric Asset Allocation is a community strategy posted by u/Separate-Ad-9633 on r/LETFs (September 2026). The name is literal: it hybridises Keller and Keuning's Hybrid Asset Allocation for the structure, the Vitral Advisors multi-asset momentum model for the ranking, and a leveraged ETF universe for the raw exposure (8 of its 10 offensive funds are leveraged).
Ten offensive assets compete each month: five broad equity indices (UPRO, TQQQ, EURL, EDC, TNA) and five diversifiers (PDBC commodities, ERX energy, UGL gold, EDV extended-duration Treasuries, TMF long Treasuries). Each is scored on nine signals, total return and path efficiency over 3, 6 and 12 months plus price versus its 3-, 6- and 12-month averages. Every signal is divided by one plus the asset's correlation to the equal-weight universe, which penalises the crowded trade, then percentile-ranked. The four highest scores each take a 25% slot, and a slot is only kept if that asset's own 13612 momentum is positive.
Chimeric Asset Allocation: frequently asked questions
- What is Chimeric Asset Allocation?
- Community strategy by u/Separate-Ad-9633 (r/LETFs). A 3x LETF rotation that ranks ten offensive assets with the nine-signal Vitral score (trend, path efficiency and price-versus-average over 3, 6 and 12 months, each adjusted for the asset's correlation to the universe), holds the top 4 at 25% each, and requires positive 13612 momentum on every slot. A negative TIP canary triggers a PARTIAL retreat rather than a full one: the best equity index and any top-3 diversifier stay on, the rest goes to Treasuries.
- Who created the Chimeric Asset Allocation strategy?
- Chimeric Asset Allocation was developed by u/Separate-Ad-9633 (r/LETFs). It is based on Community strategy by u/Separate-Ad-9633 (r/LETFs), September 2026. Hybridises Keller and Keuning, Hybrid Asset Allocation (SSRN 4346906) and Rizzolo and Zambrano, Vitral multi-asset momentum (SSRN 4199648)..
- What is the historical return and maximum drawdown of Chimeric Asset Allocation?
- Backtested from 1982-02-26 to 2026-10-01, Chimeric Asset Allocation returned 30.8% CAGR with a -52.5% maximum drawdown and a Sharpe ratio of 1.06. Past performance does not guarantee future results.
- How often is Chimeric Asset Allocation rebalanced?
- Chimeric Asset Allocation is rebalanced monthly. BestFolio publishes the updated allocation signal each period.
- Is Chimeric Asset Allocation a tactical asset allocation strategy?
- Yes. Chimeric Asset Allocation 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 (1982-02-26 to 2026-10-01)
| Metric | Chimeric Asset Allocation |
|---|---|
| CAGR | 30.8% |
| Max Drawdown | -52.5% |
| Sharpe | 1.06 |
| Sortino | 2.10 |
| Volatility | 28.4% |
| Calmar | 0.59 |
| Total Return | 15978126.0% |
| Backtest Period | 44.6 years |
Every rebalance fills at the signal-day close, net of modeled transaction costs. Followers trade at the next open; the delayed-close line in the Rebalance Frequency Sensitivity card shows the effect of trading one session later. Execution assumption
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- monthly
- Risk Level
- aggressive
- Variants
- 2
- Author
- u/Separate-Ad-9633 (r/LETFs)
- Source
- Community strategy by u/Separate-Ad-9633 (r/LETFs), September 2026. Hybridises Keller and Keuning, Hybrid Asset Allocation (SSRN 4346906) and Rizzolo and Zambrano, Vitral multi-asset momentum (SSRN 4199648).
Asset Classes
- US Equity (3x)
- International Equity (3x)
- Emerging Markets (3x)
- Small Cap (3x)
- Commodities
- Energy (2x)
- Gold (2x)
- Long Treasuries (3x)
- Short Treasuries
Further reading
New to this approach? Read what tactical asset allocation is and how it works.
Holding Chimeric Asset Allocation alongside another strategy? Use the free portfolio overlap calculator to see how much of the two portfolios actually differs.
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