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Strategies/RP Gold+SCV (Schwoerer)

RP Gold+SCV (Schwoerer)

TacticalFreemoderateRobustness 0.95

Based on research by Martin Schwoerer

This is BestFolio's independent implementation. Not affiliated with or endorsed by the original author.

Launched May 4, 2025
momentum
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About this Strategy

Martin Schwoerer's Risk Parity Gold + Small Cap Value strategy applies inverse-volatility weighting across GLD (Gold), VIOV (Vanguard S&P Small-Cap 600 Value), and IEF (Intermediate Treasuries). An optional 200-day SMA trend filter excludes assets in a downtrend before applying risk parity weighting.

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Strategy Rules

Selected flavour
RP Gold+SCV (GLD/VIOV/IEF): Schwoerer: Risk Parity with Gold (GLD), Small Cap Value (VIOV), and Intermediate Treasuries (IEF). 200d SMA trend filter.
  1. 1Universe: GLD (Gold), VIOV (Small Cap Value), IEF (Intermediate Treasuries)
  2. 2If SMA filter enabled: exclude any asset trading below its 200-day SMA
  3. 3Compute 60-day rolling volatility for qualifying assets
  4. 4Allocate using inverse-volatility weighting
  5. 5If no asset qualifies → 100% BIL (cash proxy)

Asset Universe

3 instruments this strategy can hold

GLD
Gold
VIOV
Vanguard S&P 600 Value
IEF
7-10Y Treasuries

Key Differentiators

Monthly rebalancingTactical rotationModerate riskMomentum-based3 variants

Research Source

MS

Based on research by Martin Schwoerer

Read original paper →

Strategy Info

Type
Tactical (TAA)
Frequency
monthly
Next Rebalance
Jul 109:30 ET (13d)
Variants
3
Risk Category
moderate
Regime
Mixed
Signal Date
2026-06-17
Tags
momentum
Type
Tactical Asset Allocation (TAA)
Trading Frequency
Monthly (last trading day)
Trend Filter
200-day SMA per asset (optional, enabled by default)
Weighting
Inverse-volatility (risk parity) among qualifying assets
Volatility Measure
60-day rolling standard deviation of daily returns
Universe Size
3 risky assets + 1 cash proxy
Data Source
Institutional-grade market data (13 months minimum history)

Asset Classes

GoldSmall Cap Value EquityIntermediate-Term Treasuries

RP Gold+SCV (Schwoerer) at a glance

RP Gold+SCV (Schwoerer) is a tactical asset allocation (TAA) strategy by Martin Schwoerer across Gold, Small Cap Value Equity, Intermediate-Term Treasuries, rebalanced monthly. Backtested 1986-02-28 to 2026-06-18 (40.3 years): 6.6% CAGR, 0.81 Sharpe, -30.7% max drawdown, 8.1% volatility.

Type
Tactical (TAA)
Author
Martin Schwoerer
Rebalancing
Monthly
Risk
Moderate
Period
1986-02-28 to 2026-06-18
CAGR
6.6%
Sharpe
0.81
Max Drawdown
-30.7%
Volatility
8.1%

RP Gold+SCV (Schwoerer) Tactical Asset Allocation Strategy

Martin Schwoerer's Risk Parity Gold + Small Cap Value strategy applies inverse-volatility weighting across GLD (Gold), VIOV (Vanguard S&P Small-Cap 600 Value), and IEF (Intermediate Treasuries). An optional 200-day SMA trend filter excludes assets in a downtrend before applying risk parity weighting.

Backtest Performance (1986-02-28 to 2026-06-18)

MetricRP Gold+SCV (Schwoerer)
Compound Annual Growth Rate (CAGR)6.6%
Maximum Drawdown-30.7%
Sharpe Ratio0.81
Sortino Ratio1.27
Annualized Volatility8.1%
Calmar Ratio0.22
Total Return1224.7%
Backtest Period40.3 years

Strategy Details

Type
Tactical (TAA)
Rebalancing
monthly
Risk Level
moderate
Variants
3
Author
Martin Schwoerer

Asset Classes

  • Gold
  • Small Cap Value Equity
  • Intermediate-Term Treasuries

Categories

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Disclaimer: BestFolio is an informational tool only and does not provide investment advice, recommendations, or solicitations to buy or sell securities. All strategy signals, backtests, and performance metrics are provided for educational and research purposes. Past performance is not indicative of future results. You are solely responsible for your own investment decisions. BestFolio is not a registered investment advisor, broker-dealer, or financial planner. Always consult a qualified financial professional before making investment decisions.

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