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.
- Type
- Tactical (TAA)
- Author
- Beyond Passive (adapted)
- Rebalancing
- Monthly
- Risk
- Conservative
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)..
- 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.
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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