KDA (Kipnis Defensive Adaptive) at a glance

KDA (Kipnis Defensive Adaptive) is a tactical asset allocation (TAA) strategy by David Varadi / Ilya Kipnis across US Equity, International Equity, Emerging Markets, Bonds, rebalanced monthly. Backtested 1992-11-30 to 2026-04-24 (33.5 years): 7.1% CAGR, 0.89 Sharpe, -25.1% max drawdown, 8.1% volatility.

Type
Tactical (TAA)
Author
David Varadi / Ilya Kipnis
Rebalancing
Monthly
Risk
Moderate
Period
1992-11-30 to 2026-04-24
CAGR
7.1%
Sharpe
0.89
Max Drawdown
-25.1%
Volatility
8.1%

KDA (Kipnis Defensive Adaptive) Tactical Asset Allocation Strategy

Kipnis Defensive Adaptive uses a canary universe of SHY and IEF (bond momentum) to toggle between offensive (top 6 of 8 assets by 13612W) and defensive (equal-weight SHY + IEF). Supports optional TBSZ stacking.

Backtest Performance (1992-11-30 to 2026-04-24)

MetricKDA (Kipnis Defensive Adaptive)
Compound Annual Growth Rate (CAGR)7.1%
Maximum Drawdown-25.1%
Sharpe Ratio0.89
Sortino Ratio1.22
Annualized Volatility8.1%
Calmar Ratio0.28
Total Return897.8%
Backtest Period33.5 years

Strategy Details

Type
Tactical (TAA)
Rebalancing
monthly
Risk Level
moderate
Variants
2
Author
David Varadi / Ilya Kipnis
Source
Varadi, D. & Kipnis, I. Defensive Adaptive Asset Allocation (KDA)

Asset Classes

  • US Equity
  • International Equity
  • Emerging Markets
  • Bonds
  • TIPS
  • Commodities
  • Gold
  • Short-Term Treasuries

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