TAA.For The Masses
Strategy Library
Relative momentumby Gary Antonacci

Global Equities Momentum

US or international stocks when stocks beat T-bills; else bonds.

Holding now

Signal from Aug 2026 close
  • VEU100%
  • VEUIntl ex-US100.0%

Trailing returns

Through Sep 25, 2026 · 3Y+ annualised

1M

-0.8%

YTD

+15.7%

1Y

+22.4%

3Y

+23.2%

5Y

+11.2%

10Y

+9.7%

Growth of $100

Backtest from Aug 1, 2002 to Sep 25, 2026 (24.0 years)

Global Equities Momentum+989%
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

+10.6%

Volatility

15.6%

Max drawdown

-33.7%

Sharpe

0.62

Sortino

0.87

Calmar

0.31

Best year

+29.9%

Worst year

-17.2%

Drawdowns

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

Calendar-year returns

Faded bars are partial years · 65% 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

Antonacci's dual momentum model. Absolute momentum asks whether US stocks beat T-bills over 12 months; if so, relative momentum picks the stronger of US and international stocks. If not, the whole portfolio moves to aggregate bonds.

The rules

  1. 1If SPY's 12-month return beats T-bills', hold the stronger of SPY and VEU by 12-month return.
  2. 2Otherwise hold aggregate bonds.

Funds used

  • BIL T-Bills
  • BND US Aggregate Bonds
  • SPY S&P 500
  • VEU Intl ex-US

Early history uses proxy funds: AGG, EFA, IEF, 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