GPMv (DMS) at a glance

GPMv (DMS) is a tactical asset allocation (TAA) strategy by Randy Harris (based on TrendXplorer's GPM) across US Equity, Tech, Mid-Cap, Pacific, rebalanced monthly. Backtested 1997-04-30 to 2026-04-24 (29.0 years): 10.9% CAGR, 1.02 Sharpe, -15.2% max drawdown, 10.7% volatility.

Type
Tactical (TAA)
Author
Randy Harris (based on TrendXplorer's GPM)
Rebalancing
Monthly
Risk
Moderate
Period
1997-04-30 to 2026-04-24
CAGR
10.9%
Sharpe
1.02
Max Drawdown
-15.2%
Volatility
10.7%

GPMv (DMS) Tactical Asset Allocation Strategy

GPMv is Randy Harris's DMS adaptation of GPM by Keuning & Keller. It uses correlation-adjusted momentum z-scores across 11 risky and 3 safe assets. The key GPMv modification is n_positive_v = n_positive + 1, allowing quicker re-entry into risky assets after sell-offs. The safety fraction scales linearly with market breadth.

Backtest Performance (1997-04-30 to 2026-04-24)

MetricGPMv (DMS)
Compound Annual Growth Rate (CAGR)10.9%
Maximum Drawdown-15.2%
Sharpe Ratio1.02
Sortino Ratio1.26
Annualized Volatility10.7%
Calmar Ratio0.72
Total Return1929.5%
Backtest Period29.0 years

Strategy Details

Type
Tactical (TAA)
Rebalancing
monthly
Risk Level
moderate
Variants
1
Author
Randy Harris (based on TrendXplorer's GPM)
Source
Keuning, J.W. & Keller, W.J. (2016). Generalized Protective Momentum (GPM)

Asset Classes

  • US Equity
  • Tech
  • Mid-Cap
  • Pacific
  • Europe
  • Gold
  • Commodities
  • REITs
  • High Yield Bonds
  • Corporate Bonds
  • Long-Term Treasuries
  • Short-Term Treasuries

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