RP3 Trend-Tilted Core
RP3 Trend-Tilted Core is a tactical asset allocation strategy reviewed on a monthly cadence. Its hypothetical backtest runs through 2026-08-12. BestFolio supplies the public rule or approach and backtest context; current signals, allocations, and paid interactive data remain restricted to Pro access. The recorded 2026-06 publication or construction boundary separates pre-publication simulation from later market observations under fixed rules; all returns remain hypothetical. Users review each scheduled signal and place any resulting trades in their own brokerage. BestFolio does not execute trades or provide personalized investment advice.
- Cadence
- Monthly
- Backtest data through
- 2026-08-12
- History boundary
- The recorded 2026-06 publication or construction boundary separates pre-publication simulation from later market observations under fixed rules; all returns remain hypothetical.
- Rule / approach
- 1. Weight SPY / TLT / GLD by inverse trailing volatility (risk parity) 2. Scale each asset's own trend signal to [-1, +1] 3. Tilt each by weight × (0.5 + 0.5 × trend): uptrend full, neutral half, downtrend zero 4. Park the de-tilted…
- BestFolio supplies
- the public rule or approach and backtest context; current signals, allocations, and paid interactive data remain restricted to Pro access
- Customer action
- Review each scheduled signal and place any required trades in your own brokerage; BestFolio does not execute orders.
- Costs and exclusions
- 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
- Freshness
- The latest available backtest ends 2026-08-12. A run timestamp is not exposed here, so no stronger freshness claim is made.
- Next expected action
- First trading day of September; scheduled 2026-09-01 at 09:30 ET. Review the published signal before placing any trade.
RP3 Trend-Tilted Core at a glance
RP3 Trend-Tilted Core is a tactical asset allocation (TAA) strategy by Beyond Passive (adapted) across US Equity, Long Treasuries, Gold, Cash, rebalanced monthly. Backtested 1973-03-30 to 2026-08-12 (53.3 years): 8.3% CAGR, 1.17 Sharpe, -12.4% max drawdown, 5.1% volatility.
- Type
- Tactical (TAA)
- Author
- Beyond Passive (adapted)
- Rebalancing
- Monthly
- Risk
- Conservative
- Period
- 1973-03-30 to 2026-08-12
- CAGR
- 8.3%
- Sharpe
- 1.17
- Max Drawdown
- -12.4%
- Volatility
- 5.1%
RP3 Trend-Tilted Core — Tactical Asset Allocation Strategy
RP3 Trend-Tilted Core keeps a three-asset inverse-volatility risk-parity core (US equity SPY, long Treasuries TLT, gold GLD) and tilts each asset independently by its own trend: an uptrend holds the full risk-parity weight, a neutral trend holds half, and a downtrend drops to cash. It is a long-only, retail substitute for a futures trend-following program, because tilting each asset independently sidesteps the asset-specific drawdowns (such as a decade-long bond bear) that a single market-wide on/off gate misses.
What drives the edge: over proxy history to 1972, the per-asset tilt lifts the core from Sharpe ~0.95 / -37% max drawdown to Sharpe ~1.5 / about -12%, and the result is robust to the exact trend signal used (it is not an over-fit to one definition). Honest caveat: that edge is concentrated in trending, divergent regimes (the 1970s-80s stagflation and bond bear); in the calm modern ETF era the tilt does not beat a static vol-targeted core on Sharpe and instead trades return for shallower drawdowns. Hold it as long-history all-weather / regime insurance, not a modern-era return booster.
RP3 Trend-Tilted Core: frequently asked questions
- What is RP3 Trend-Tilted Core?
- Three-asset inverse-vol risk-parity core (SPY / TLT / GLD), each asset independently tilted by its own trend: uptrend full weight, neutral half, downtrend to cash. A long-only retail substitute for a futures trend program. Built as long-history all-weather / regime insurance: the per-asset tilt roughly thirds the drawdown versus a static core over 1972+, with the edge concentrated in trending, divergent regimes rather than the calm modern era. Monthly rebalance.
- Who created the RP3 Trend-Tilted Core strategy?
- RP3 Trend-Tilted Core was developed by Beyond Passive (adapted). It is based on Beyond Passive, Trend Following (4/4): the poor man's trend program (2026)..
- What is the historical return and maximum drawdown of RP3 Trend-Tilted Core?
- Backtested from 1973-03-30 to 2026-08-12, RP3 Trend-Tilted Core returned 8.3% CAGR with a -12.4% maximum drawdown and a Sharpe ratio of 1.17. Past performance does not guarantee future results.
- How often is RP3 Trend-Tilted Core rebalanced?
- RP3 Trend-Tilted Core is rebalanced monthly. BestFolio publishes the updated allocation signal each period.
- Is RP3 Trend-Tilted Core a tactical asset allocation strategy?
- Yes. RP3 Trend-Tilted Core 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 (1973-03-30 to 2026-08-12)
| Metric | RP3 Trend-Tilted Core |
|---|---|
| CAGR | 8.3% |
| Max Drawdown | -12.4% |
| Sharpe | 1.17 |
| Sortino | 1.96 |
| Volatility | 5.1% |
| Calmar | 0.67 |
| Total Return | 7072.9% |
| Backtest Period | 53.3 years |
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- monthly
- Risk Level
- conservative
- Variants
- 2
- Author
- Beyond Passive (adapted)
- Source
- Beyond Passive, Trend Following (4/4): the poor man's trend program (2026).
Asset Classes
- US Equity
- Long Treasuries
- Gold
- Cash
Further reading
New to this approach? Read what tactical asset allocation is and how it works.
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