KISS Momentum
System 1: score 8 assets by avg 2/4/6/8/10 month returns, filter by absolute momentum, top 4 by inverse-vol. Backtest max drawdown: -22.1%.
Strategy & methodology
System 1: score 8 assets by avg 2/4/6/8/10 month returns, filter by absolute momentum, top 4 by inverse-vol; System 2: pick single best by YTD return (seasonal cash reset Dec/Jan); Blend both systems 50/50.
- Strategy type:
- Tactical asset allocation
- Rebalance frequency:
- Monthly
- Original publication:
- 2024; results after that are out-of-sample for the original research. All results are backtest simulations.
- Data through:
- Backtest data through 2026-10-22.
Simulated history
Stand-in funds and until when (5)
- TLT: VUSTX before Jul 26, 2002
- IEF: VFITX before Jul 26, 2002
- EFA: VGTSX before Aug 17, 2001
- XLE: FSENX before Dec 22, 1998
- SPY: VFINX before Jan 29, 1993
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
System 1: score 8 assets by avg 2/4/6/8/10 month returns, filter by absolute momentum, top 4 by inverse-vol. Backtest max drawdown: -22.1%. 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 a86cd910, published 2026-10-17
Is KISS Momentum still working in 2026?
KISS Momentum returned 9.85% over the trailing 12 months and 48.67% over 36 months through 2026-10-22, compared with a full-backtest annualized return of 10.89%. Its full-backtest maximum drawdown was -22.15%. The full sample contains 10687 daily NAV observations from 1985-01-01. These are model results, not investor account returns or a promise. As of 2026-10-22 it is -2.95% below its high-water mark of 2026-10-06, 16 days ago, and its longest run below a previous high was 3.5 years. Recent returns do not establish that the strategy will keep working.
| Period | Return | CAGR | Max drawdown | Observations | Dates |
|---|---|---|---|---|---|
| Trailing 12 months | 9.85% | Not annualized | -6.82% | 252 | 2025-10-22 to 2026-10-22 |
| Trailing 36 months | 48.67% | Not annualized | -8.35% | 754 | 2023-10-20 to 2026-10-22 |
| Full backtest | 7433.89% | 10.89% | -22.15% | 10687 | 1985-01-01 to 2026-10-22 |
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 2026-10-06, 16 days before 2026-10-22, and it is -2.95% below that level now. The longest run below a previous high in the full backtest was 3.5 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.
KISS Momentum at a glance
KISS Momentum is a tactical asset allocation (TAA) strategy by Community Research across US Equity, International Equity, Long Treasuries, Intermediate Treasuries, rebalanced monthly. Backtested 1985-01-01 to 2026-10-22 (41.8 years): 10.9% CAGR, 0.89 Sharpe, -22.1% max drawdown, 9.4% volatility.
- Type
- Tactical (TAA)
- Author
- Community Research
- Rebalancing
- Monthly
- Risk
- Moderate
- Period
- 1985-01-01 to 2026-10-22
- CAGR
- 10.9%
- Sharpe
- 0.89
- Max Drawdown
- -22.1%
- Volatility
- 9.4%
KISS Momentum — Tactical Asset Allocation Strategy
KISS Momentum blends two complementary systems (50/50). System 1 ('Broad Base') scores 8 assets by multi-lookback momentum (2/4/6/8/10 months), selects top 4, and weights by inverse volatility. System 2 ('YTD Sniper') picks the single best asset by year-to-date return from 4 assets, with seasonal cash reset in Dec/Jan.
KISS Momentum: frequently asked questions
- What is KISS Momentum?
- Dual-system blend: System 1 uses multi-lookback momentum (2/4/6/8/10 month average) across 8 assets with inverse-vol sizing and cash trend filter. System 2 uses YTD momentum with winner-take-all, dynamic cash scaling (10x risk-free rate), and Dec/Jan seasonal reset. Inspired by Resolve AAA and Artemis Dragon Portfolio.
- Who created the KISS Momentum strategy?
- KISS Momentum was developed by Community Research.
- What is the historical return and maximum drawdown of KISS Momentum?
- Backtested from 1985-01-01 to 2026-10-22, KISS Momentum returned 10.9% CAGR with a -22.1% maximum drawdown and a Sharpe ratio of 0.89. Past performance does not guarantee future results.
- How often is KISS Momentum rebalanced?
- KISS Momentum is rebalanced monthly. BestFolio publishes the updated allocation signal each period.
- Is KISS Momentum a tactical asset allocation strategy?
- Yes. KISS Momentum 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 (1985-01-01 to 2026-10-22)
| Metric | KISS Momentum |
|---|---|
| CAGR | 10.9% |
| Max Drawdown | -22.1% |
| Sharpe | 0.89 |
| Sortino | 1.45 |
| Volatility | 9.4% |
| Calmar | 0.49 |
| Total Return | 7466.8% |
| Backtest Period | 41.8 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
- moderate
- Variants
- 4
- Author
- Community Research
Asset Classes
- US Equity
- International Equity
- Long Treasuries
- Intermediate Treasuries
- Gold
- Energy
- US Dollar
- Cash
Further reading
New to this approach? Read what tactical asset allocation is and how it works.
Holding KISS Momentum alongside another strategy? Use the free portfolio overlap calculator to see how much of the two portfolios actually differs.
Track KISS Momentum in Your Portfolio
Sign up for BestFolio to get monthly rebalancing signals, blend strategies into custom portfolios, and receive alerts when allocations change.
Related strategies
- HAA (Hybrid Asset Allocation) by Wouter J. Keller & Jan Willem KeuningSharpe 1.10
- BAA (Bold Asset Allocation) by Wouter J. KellerSharpe 0.96
- DAA (Defensive Asset Allocation) by Wouter J. Keller & Jan Willem KeuningSharpe 0.96
- PAA (Protective Asset Allocation) by Wouter J. Keller & Jan Willem KeuningSharpe 0.94