Benign Neglect (Schwoerer) at a glance
Benign Neglect (Schwoerer) is a tactical asset allocation (TAA) strategy by Martin Schwoerer across US Equity, T-Bills, rebalanced monthly. Backtested 1981-02-27 to 2026-04-24 (45.1 years): 9.7% CAGR, 0.73 Sharpe, -51.5% max drawdown, 14.1% volatility.
- Type
- Tactical (TAA)
- Author
- Martin Schwoerer
- Rebalancing
- Monthly
- Risk
- Moderate
- Period
- 1981-02-27 to 2026-04-24
- CAGR
- 9.7%
- Sharpe
- 0.73
- Max Drawdown
- -51.5%
- Volatility
- 14.1%
Benign Neglect (Schwoerer) — Tactical Asset Allocation Strategy
Benign Neglect (5% Canary) is a rare-trading crash protection strategy. It stays in SPY by default and only exits via a multi-step sell signal: SPY must drop 5% from its 52-week high within 15 days, then close below its 200-day SMA for 2 consecutive days within the next 42 days. After selling, a 4-month quiet period prevents premature re-entry.
Backtest Performance (1981-02-27 to 2026-04-24)
| Metric | Benign Neglect (Schwoerer) |
|---|---|
| Compound Annual Growth Rate (CAGR) | 9.7% |
| Maximum Drawdown | -51.5% |
| Sharpe Ratio | 0.73 |
| Sortino Ratio | 0.83 |
| Annualized Volatility | 14.1% |
| Calmar Ratio | 0.19 |
| Total Return | 6410.9% |
| Backtest Period | 45.1 years |
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- monthly
- Risk Level
- moderate
- Variants
- 1
- Author
- Martin Schwoerer
Asset Classes
- US Equity
- T-Bills
Categories
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