Dynamic Macro Allocation (Sadek) at a glance
Dynamic Macro Allocation (Sadek) is a tactical asset allocation (TAA) strategy by Bill Sadek across US Mega-Cap Growth, Diversified Commodities, Gold, US Core Bonds, rebalanced monthly. Backtested 1993-11-30 to 2026-07-03 (32.6 years): 11.7% CAGR, 1.16 Sharpe, -14.5% max drawdown, 11.2% volatility.
- Type
- Tactical (TAA)
- Author
- Bill Sadek
- Rebalancing
- Monthly
- Period
- 1993-11-30 to 2026-07-03
- CAGR
- 11.7%
- Sharpe
- 1.16
- Max Drawdown
- -14.5%
- Volatility
- 11.2%
Dynamic Macro Allocation (Sadek) — Tactical Asset Allocation Strategy
Bill Sadek's Dynamic Macro Allocation model, contributed April 2026.
Each month, the 7-ETF macro universe (MGK mega-cap growth, PDBC diversified commodities, GLDM gold, BOND core bonds, VGLT long Treasury, MINT ultra-short bonds, VCSH short-term corporates) is scored using a composite momentum across four lookback periods (1, 3, 6 and 9 months) weighted 25% each. Unlike rank-order weighting (which Alpha-One uses), this strategy uses 'weight performance' which averages the actual returns across periods.
Dynamic Macro Allocation (Sadek): frequently asked questions
- What is Dynamic Macro Allocation (Sadek)?
- Bill Sadek's Dynamic Macro Allocation model. 7-ETF macro universe, multi-period performance-weighted momentum (1/3/6/9 months, 25% each), top-2 selection with Geometric Increasing weights (67%/33%), 6-month SMA trend filter per selected asset (failed assets move to cash). Monthly rebalance.
- Who created the Dynamic Macro Allocation (Sadek) strategy?
- Dynamic Macro Allocation (Sadek) was developed by Bill Sadek. It is based on Contributed by Bill Sadek (2026-04)..
- What is the historical return and maximum drawdown of Dynamic Macro Allocation (Sadek)?
- Backtested from 1993-11-30 to 2026-07-03, Dynamic Macro Allocation (Sadek) returned 11.7% CAGR with a -14.5% maximum drawdown and a Sharpe ratio of 1.16. Past performance does not guarantee future results.
- How often is Dynamic Macro Allocation (Sadek) rebalanced?
- Dynamic Macro Allocation (Sadek) is rebalanced monthly. BestFolio publishes the updated allocation signal each period.
- Is Dynamic Macro Allocation (Sadek) a tactical asset allocation strategy?
- Yes. Dynamic Macro Allocation (Sadek) 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 (1993-11-30 to 2026-07-03)
| Metric | Dynamic Macro Allocation (Sadek) |
|---|---|
| Compound Annual Growth Rate (CAGR) | 11.7% |
| Maximum Drawdown | -14.5% |
| Sharpe Ratio | 1.16 |
| Sortino Ratio | 1.82 |
| Annualized Volatility | 11.2% |
| Calmar Ratio | 0.81 |
| Total Return | 3575.2% |
| Backtest Period | 32.6 years |
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- monthly
- Variants
- 1
- Author
- Bill Sadek
- Source
- Contributed by Bill Sadek (2026-04).
Asset Classes
- US Mega-Cap Growth
- Diversified Commodities
- Gold
- US Core Bonds
- Long-Term Treasuries
- Ultra-Short Bonds
- Short-Term Corporates
Further reading
New to this approach? Read what tactical asset allocation is and how it works.
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