TAA.For The Masses
Strategy Library
Trend filtersby Trend overlay

Timed 60/40

The benchmark, with a 10-month SMA on each sleeve.

Holding now

Signal from Aug 2026 close
  • VTI60%
  • BIL40%
  • VTIUS Total Market60.0%
  • BILT-Bills40.0%

Trailing returns

Through Sep 25, 2026 · 3Y+ annualised

1M

+0.4%

YTD

+2.5%

1Y

+4.4%

3Y

+9.9%

5Y

+5.0%

10Y

+6.6%

Growth of $100

Backtest from May 1, 2003 to Sep 25, 2026 (23.3 years)

Timed 60/40+352%
60/40+544%
S&P 500+1120%

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

+6.9%

Volatility

7.5%

Max drawdown

-14.5%

Sharpe

0.72

Sortino

1.00

Calmar

0.48

Best year

+18.0%

Worst year

-9.0%

Drawdowns

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

Calendar-year returns

Faded bars are partial years · 70% 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

60/40 with Faber's rule on both the stock and bond sleeves. A direct test of whether trend filtering helps the most common portfolio.

The rules

  1. 160% US total market, 40% aggregate bonds.
  2. 2Each sleeve below its 10-month SMA at month-end moves to T-bills.

Funds used

  • BND US Aggregate Bonds
  • VTI US Total Market

Early history uses proxy funds: AGG, 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

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