TAA.For The Masses
Strategy Library
Relative momentumby Inspired by Decision Moose (Bill Dirlam)

Moose-Style Index Rotation

All-in on the single strongest of seven global funds.

Approximation only. Decision Moose's actual signals use proprietary rules, weekly/daily checks and stop-losses, so its published results will differ.

Published versions of this model differ in the details. This implementation is still being checked against the original paper, so treat its numbers as provisional.

Holding now

Signal from Aug 2026 close
  • EEM100%
  • EEMEmerging Markets100.0%

Trailing returns

Through Sep 29, 2026 · 3Y+ annualised

1M

-0.2%

YTD

-5.2%

1Y

+5.7%

3Y

+27.3%

5Y

+10.4%

10Y

+10.8%

Growth of $100

Backtest from Sep 1, 2005 to Sep 29, 2026 (21.0 years)

Moose-Style Index Rotation+384%
60/40+415%
S&P 500+812%

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

+8.2%

Volatility

22.0%

Max drawdown

-49.0%

Sharpe

0.40

Sortino

0.56

Calmar

0.17

Best year

+63.7%

Worst year

-21.7%

Drawdowns

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

Calendar-year returns

Faded bars are partial years · 53% of months positive

Performance by macro backdrop

Each month of the backtest is classified by four stress flags: yield curve inverted, credit spreads stressed, labor market weakening, volatility elevated. None is Calm, one is Caution, two or more is Stress. Returns are compounded over those months and annualised; the S&P 500 column covers the same months as this backtest.

BackdropMonthsStrategyS&P 500Months upWorst month
Calm145+5.9%+14.1%49%-11.0%
Caution77+12.4%+12.5%60%-11.1%
Stress29+6.1%-5.7%52%-21.3%

Descriptive only: months are classified with data that was not all published in real time. Sources: FRED (T10Y3M, BAA10Y, SAHMREALTIME, VIXCLS).

Worst drawdowns

Peak to trough, and how long it took to get back to the old high. Month-end values, so depths read slightly shallower than the daily maximum.

DepthPeak → troughFallRecoveryS&P 500 same window
-45.0%
Dec 2008 → Apr 20123.3 yr8.7 yr+65.8%
-29.9%
Dec 2021 → Oct 202322 mo15 mo-9.5%
-22.4%
Feb 2026 → Sep 20267 moStill below+12.3%
-18.5%
Feb 2008 → Oct 20088 mo1 mo-26.5%
-9.0%
Oct 2007 → Dec 20072 mo2 mo-5.0%

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

An open approximation of Decision Moose's Global Index Moose, published since 1992: rank US large and small caps, developed and emerging markets, long zero-coupon Treasuries, gold and short Treasuries by intermediate-term momentum and hold only the leader. Short Treasuries in the universe act as the cash option. The original's exact formula, Fed and market filters, and daily Donchian stops are proprietary and not replicated here.

The rules

  1. 1Universe: SPY, IWM, EFA, EEM, EDV, GLD, SHY.
  2. 2Score = average of 6 and 9-month returns.
  3. 3Hold 100% in the top-ranked fund; re-checked monthly.

Funds used

  • EDV Long Zero-Coupon Treasuries
  • EEM Emerging Markets
  • EFA Intl Developed (EAFE)
  • GLD Gold
  • IWM US Small Cap
  • SHY 1-3Y Treasuries
  • SPY S&P 500

Early history uses proxy funds: SHY, TLT.

Recent allocations

Percent of the portfolio in each fund, decided at each month-end and held the following month

FundSep '25Oct '25Nov '25Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26
GLD Gold100100100100100100100100····
EEM Emerging Markets········100100·100
IWM US Small Cap··········100·

Changes

  • Aug 2026Bought EEM 100% · Sold IWM (100%)
  • Jul 2026Bought IWM 100% · Sold EEM (100%)
  • May 2026Bought EEM 100% · Sold GLD (100%)

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