Optimum3.5 at a glance
Optimum3.5 is a tactical asset allocation (TAA) strategy by Todd Tresidder across US Equity, Nasdaq, REITs, International Equity, rebalanced monthly. Backtested 1997-04-30 to 2026-04-24 (29.0 years): 14.8% CAGR, 1.06 Sharpe, -26.0% max drawdown, 14.0% volatility.
- Type
- Tactical (TAA)
- Author
- Todd Tresidder
- Rebalancing
- Monthly
- Risk
- Moderate
- Period
- 1997-04-30 to 2026-04-24
- CAGR
- 14.8%
- Sharpe
- 1.06
- Max Drawdown
- -26.0%
- Volatility
- 14.0%
Optimum3.5 — Tactical Asset Allocation Strategy
Optimum3.5 by Todd Tresidder combines dual momentum with minimum-correlation portfolio construction. It scores 14 assets by composite momentum (avg 3/6/12-month), filters by absolute momentum vs BIL, takes top 5, then selects the 3 with lowest average pairwise correlation (exhaustive search over all C(5,3)=10 combinations).
Backtest Performance (1997-04-30 to 2026-04-24)
| Metric | Optimum3.5 |
|---|---|
| Compound Annual Growth Rate (CAGR) | 14.8% |
| Maximum Drawdown | -26.0% |
| Sharpe Ratio | 1.06 |
| Sortino Ratio | 1.40 |
| Annualized Volatility | 14.0% |
| Calmar Ratio | 0.57 |
| Total Return | 5409.8% |
| Backtest Period | 29.0 years |
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- monthly
- Risk Level
- moderate
- Variants
- 2
- Author
- Todd Tresidder
- Source
- Tresidder, T. Optimum3. FinancialMentor.com
Asset Classes
- US Equity
- Nasdaq
- REITs
- International Equity
- Emerging Markets
- Bonds
- TIPS
- Commodities
- Gold
- Cash
Categories
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