TAA.For The Masses
Strategy Library
Relative momentumby EngineeredPortfolio

Accelerating Dual Momentum

Faster dual momentum on 1, 3 and 6-month returns.

Holding now

Signal from Aug 2026 close
  • SPY100%
  • SPYS&P 500100.0%

Trailing returns

Through Sep 25, 2026 · 3Y+ annualised

1M

+0.8%

YTD

+6.3%

1Y

+9.1%

3Y

+17.4%

5Y

+8.2%

10Y

+12.9%

Growth of $100

Backtest from Apr 1, 2002 to Sep 25, 2026 (24.4 years)

Accelerating Dual Momentum+2005%
60/40+598%
S&P 500+1206%

Growth of $100, rebased to the start of the selected range. Month-end prices, dividends reinvested, no taxes or trading costs.

Risk & return, full backtest

CAGR

+12.5%

Volatility

16.3%

Max drawdown

-31.7%

Sharpe

0.71

Sortino

1.01

Calmar

0.39

Best year

+47.2%

Worst year

-22.7%

Drawdowns

Percent below the prior peak, vs the S&P 500

Calendar-year returns

Faded bars are partial years · 64% of months positive

Strategy Lab

Stress-test the implementation: trade on the signal day's close or later, split the portfolio into tranches that rebalance on different days (reduces timing luck), or swap a fund for a same-asset-class alternative.

The idea

Scores the S&P 500 and international small caps on the sum of their 1, 3 and 6-month returns, which reacts faster at turning points than a single 12-month lookback. When both scores are negative it retreats to long Treasuries.

The rules

  1. 1Score = 1 + 3 + 6-month return for SPY and SCZ.
  2. 2Hold the higher-scoring fund if its score is positive; otherwise hold TLT.

Funds used

  • SCZ Intl Small Cap
  • SPY S&P 500
  • TLT 20+Y Treasuries

Early history uses proxy funds: EFA, SHY.

Recent allocations

Decided at each month-end, held the following month

  • Aug 2026
  • Jul 2026
  • Jun 2026
  • May 2026
  • Apr 2026
  • Mar 2026
  • Feb 2026
  • Jan 2026
  • Dec 2025
  • Nov 2025
  • Oct 2025
  • Sep 2025

More relative momentum