Bamboo (DMS)
Hold static allocation: IWB 40%, BND 20%, DBMF 20%, SGOL 20%. Backtest max drawdown: -23.4%.
Strategy & methodology
Hold static allocation: IWB 40%, BND 20%, DBMF 20%, SGOL 20%; Bamboo+/++: each month, check IWB drawdown from its running month-end high; If drawdown > 15% → replace IWB with SSO (2x) or UPRO (3x) for up to 12 months; After 12 months of…
- Strategy type:
- Fixed allocation
- Rebalance frequency:
- Monthly
- Original publication:
- 2024-05; results after that are out-of-sample for the original research. All results are backtest simulations.
- Data through:
- Backtest data through 2026-10-01.
Simulated history
Stand-in funds and until when (3)
- DBMF: KMLM before May 8, 2019
- BND: AGG before Apr 10, 2007
- IWB: SPY before May 19, 2000
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
Hold static allocation: IWB 40%, BND 20%, DBMF 20%, SGOL 20%. Backtest max drawdown: -23.4%. This is a fixed-allocation portfolio. 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 e86efa83, published 2026-10-01
Is Bamboo (DMS) still working in 2026?
Bamboo (DMS) returned 12.44% over the trailing 12 months and 64.71% over 36 months through 2026-10-01, compared with a full-backtest annualized return of 9.03%. Its full-backtest maximum drawdown was -23.38%. The full sample contains 10645 daily NAV observations from 1985-03-29. These are model results, not investor account returns or a promise. As of 2026-10-01 it is -2.06% below its high-water mark of 2026-08-27, 35 days ago, and its longest run below a previous high was 1.9 years. Recent returns do not establish that the strategy will keep working.
| Period | Return | CAGR | Max drawdown | Observations | Dates |
|---|---|---|---|---|---|
| Trailing 12 months | 12.44% | Not annualized | -7.31% | 252 | 2025-10-01 to 2026-10-01 |
| Trailing 36 months | 64.71% | Not annualized | -8.79% | 754 | 2023-09-29 to 2026-10-01 |
| Full backtest | 3523.65% | 9.03% | -23.38% | 10645 | 1985-03-29 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 2026-08-27, 35 days before 2026-10-01, and it is -2.06% below that level now. The longest run below a previous high in the full backtest was 1.9 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.
Bamboo (DMS) at a glance
Bamboo (DMS) is a fixed-allocation portfolio by Randy Harris across US Equity, US Bonds, Managed Futures, Gold, rebalanced monthly. Backtested 1985-03-29 to 2026-10-01 (41.5 years): 9.0% CAGR, 1.19 Sharpe, -23.4% max drawdown, 8.1% volatility.
- Type
- Fixed Allocation
- Author
- Randy Harris
- Rebalancing
- Monthly
- Risk
- Moderate
- Period
- 1985-03-29 to 2026-10-01
- CAGR
- 9.0%
- Sharpe
- 1.19
- Max Drawdown
- -23.4%
- Volatility
- 8.1%
Bamboo (DMS) — Fixed Allocation Portfolio
The Bamboo portfolio is a static 4-ETF allocation designed by Randy Harris (Dual Momentum Systems) as a modern alternative to the classic 60/40 portfolio. It combines US large-cap equities, total bond market, managed futures, and physical gold.
The Bamboo+ and Bamboo++ variants add a Smart Leverage overlay on the equity portion. When IWB experiences a drawdown exceeding 15% from its month-end peak, the equity sleeve is replaced with SSO (2x) or UPRO (3x) for up to 12 months, capturing the recovery.
Bamboo (DMS): frequently asked questions
- What is Bamboo (DMS)?
- Static 4-ETF allocation designed as a better 60/40: US large cap, total bonds, managed futures, and gold. Bamboo+/++ variants activate Smart Leverage (2x/3x) on the equity portion after 15% drawdowns. Annual rebalancing.
- Who created the Bamboo (DMS) strategy?
- Bamboo (DMS) was developed by Randy Harris.
- What is the historical return and maximum drawdown of Bamboo (DMS)?
- Backtested from 1985-03-29 to 2026-10-01, Bamboo (DMS) returned 9.0% CAGR with a -23.4% maximum drawdown and a Sharpe ratio of 1.19. Past performance does not guarantee future results.
- How often is Bamboo (DMS) rebalanced?
- Bamboo (DMS) is rebalanced monthly. BestFolio publishes the updated allocation signal each period.
- Is Bamboo (DMS) a fixed or tactical strategy?
- Bamboo (DMS) is a fixed-allocation (strategic) portfolio: it holds a set allocation and rebalances on schedule rather than rotating based on market signals.
Backtest Performance (1985-03-29 to 2026-10-01)
| Metric | Bamboo (DMS) |
|---|---|
| CAGR | 9.0% |
| Max Drawdown | -23.4% |
| Sharpe | 1.19 |
| Sortino | 2.15 |
| Volatility | 8.1% |
| Calmar | 0.39 |
| Total Return | 3523.7% |
| Backtest Period | 41.5 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
- Fixed / Strategic
- Rebalancing
- monthly
- Risk Level
- moderate
- Variants
- 3
- Author
- Randy Harris
Asset Classes
- US Equity
- US Bonds
- Managed Futures
- Gold
Categories
Further reading
Holding Bamboo (DMS) alongside another strategy? Use the free portfolio overlap calculator to see how much of the two portfolios actually differs.
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