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Split-Lookback Momentum Pair at a glance

Split-Lookback Momentum Pair is a tactical asset allocation (TAA) strategy by BestFolio Research across US Equity, International Developed, International Small Cap, Gold, rebalanced monthly. Backtested 1992-11-30 to 2026-05-20 (33.5 years): 11.2% CAGR, 0.78 Sharpe, -28.6% max drawdown, 15.0% volatility.

Type
Tactical (TAA)
Author
BestFolio Research
Rebalancing
Monthly
Risk
Moderate
Period
1992-11-30 to 2026-05-20
CAGR
11.2%
Sharpe
0.78
Max Drawdown
-28.6%
Volatility
15.0%

Split-Lookback Momentum Pair Tactical Asset Allocation Strategy

Split-lookback momentum pair: two independent 50% sub-portfolios using different momentum lookbacks. The long-lookback sleeve picks the single best asset by 12-month return; the short-lookback sleeve picks the single best by an averaged 1/3/6-month return. Both apply an absolute-momentum filter vs BIL, shifting to cash when the selected asset underperforms the cash benchmark.

Backtest Performance (1992-11-30 to 2026-05-20)

MetricSplit-Lookback Momentum Pair
Compound Annual Growth Rate (CAGR)11.2%
Maximum Drawdown-28.6%
Sharpe Ratio0.78
Sortino Ratio1.00
Annualized Volatility15.0%
Calmar Ratio0.39
Total Return3375.4%
Backtest Period33.5 years

Strategy Details

Type
Tactical (TAA)
Rebalancing
monthly
Risk Level
moderate
Variants
1
Author
BestFolio Research

Asset Classes

  • US Equity
  • International Developed
  • International Small Cap
  • Gold
  • TIPS
  • Long Treasuries
  • Cash

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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