Tactical Allocation
Test rules-based strategies that move between assets and a safe haven based on price signals — moving-average timing, relative and dual momentum, and volatility targeting. Every signal uses only past data, so results are point-in-time safe (no look-ahead).
Educational use only — not investment advice. Results are hypothetical.Read full disclaimer
This tool is for educational and informational purposes only and does not provide financial, investment, tax, legal, or accounting advice. Results are hypothetical and based on historical data and assumptions that may be inaccurate. Past performance does not guarantee future results. Consult a licensed professional before making investment decisions.
What is the Tactical Allocation?
Test moving-average timing, relative and dual momentum, and volatility targeting against buy & hold — with a full allocation timeline.
New here? How this works
Tactical allocation moves between risky assets and a safe haven based on rules rather than a fixed mix. This tool backtests four classic, rules-based strategies — moving-average timing, relative momentum, dual momentum, and volatility targeting — and compares each to simply buying and holding. Every signal is computed only from past data, so the results are point-in-time safe with no look-ahead bias, and an allocation timeline shows exactly what the strategy held and when.
How to use it
- 1Define your risky universe of tickers and a safe 'out-of-market' asset (such as cash or short-term Treasuries).
- 2Pick a strategy — moving-average timing, relative or dual momentum, or volatility targeting — set its parameters and a date range, and add an initial (and optional recurring) investment.
- 3Run it to compare the strategy against buy & hold, with an allocation timeline showing exactly what it held and when, plus trade-count and time-in-market stats.
What you'll get
- Strategy vs. buy & hold metrics (CAGR, volatility, max drawdown, Sharpe)
- Beta and alpha of the strategy vs. buy & hold
- Growth and drawdown charts
- Allocation timeline (what was held each month)
- Trade count, turnover, and time-in-market stats
↓ Start below
Hold the top-N by trailing return, but only if they also beat the safe asset (absolute momentum); else retreat to safety.
Supports U.S.-listed stocks & ETFs, subject to shared price history; all values in USD.
Where capital goes when out of the market (e.g. BIL cash, BND bonds, SHY short Treasuries).
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Basis points charged on every dollar bought or sold at each switch — an all-in execution proxy for spreads, commissions, and slippage (0 = off). Taxes are excluded. Folded directly into the results below.
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How the Tactical Allocation works
Signals are evaluated at each month-end using only data up to that point, then the resulting allocation earns the next month's return — there is no look-ahead. Moving-average timing holds each asset only while it's above its N-month average; momentum models rank by trailing return; volatility targeting scales exposure to a target risk level.