Tactical Permanent Portfolio at a glance
Tactical Permanent Portfolio is a tactical asset allocation (TAA) strategy by Adam Butler (ReSolve) across US Equity, Long-Term Treasuries, Gold, Cash (T-Bills), rebalanced monthly. Backtested 1961-02-28 to 2026-07-03 (65.3 years): 7.8% CAGR, 1.44 Sharpe, -10.5% max drawdown, 4.5% volatility.
- Type
- Tactical (TAA)
- Author
- Adam Butler (ReSolve)
- Rebalancing
- Monthly
- Risk
- Conservative
- Period
- 1961-02-28 to 2026-07-03
- CAGR
- 7.8%
- Sharpe
- 1.44
- Max Drawdown
- -10.5%
- Volatility
- 4.5%
Tactical Permanent Portfolio — Tactical Asset Allocation Strategy
Adam Butler's Tactical Permanent Portfolio adds a momentum overlay to Harry Browne's classic Permanent Portfolio. The base allocation is 25% each in SPY, TLT, GLD, and BIL. The tactical layer checks each risky asset's 12-month return; if negative, that 25% slice shifts to BIL. In the worst case, the portfolio becomes 100% BIL.
Tactical Permanent Portfolio: frequently asked questions
- What is Tactical Permanent Portfolio?
- Tactical overlay on the classic 25/25/25/25 Permanent Portfolio. Assets with negative 12-month returns are replaced by cash, adding momentum-based protection while preserving the core all-weather structure. Monthly rebalancing.
- Who created the Tactical Permanent Portfolio strategy?
- Tactical Permanent Portfolio was developed by Adam Butler (ReSolve). It is based on Butler, A. (ReSolve Asset Management). Tactical Permanent Portfolio.
- What is the historical return and maximum drawdown of Tactical Permanent Portfolio?
- Backtested from 1961-02-28 to 2026-07-03, Tactical Permanent Portfolio returned 7.8% CAGR with a -10.5% maximum drawdown and a Sharpe ratio of 1.44. Past performance does not guarantee future results.
- How often is Tactical Permanent Portfolio rebalanced?
- Tactical Permanent Portfolio is rebalanced monthly. BestFolio publishes the updated allocation signal each period.
- Is Tactical Permanent Portfolio a tactical asset allocation strategy?
- Yes. Tactical Permanent Portfolio 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 (1961-02-28 to 2026-07-03)
| Metric | Tactical Permanent Portfolio |
|---|---|
| Compound Annual Growth Rate (CAGR) | 7.8% |
| Maximum Drawdown | -10.5% |
| Sharpe Ratio | 1.44 |
| Sortino Ratio | 2.41 |
| Annualized Volatility | 4.5% |
| Calmar Ratio | 0.74 |
| Total Return | 13485.9% |
| Backtest Period | 65.3 years |
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- monthly
- Risk Level
- conservative
- Variants
- 1
- Author
- Adam Butler (ReSolve)
- Source
- Butler, A. (ReSolve Asset Management). Tactical Permanent Portfolio
Asset Classes
- US Equity
- Long-Term Treasuries
- Gold
- Cash (T-Bills)
Categories
Further reading
New to this approach? Read what tactical asset allocation is and how it works.
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