TuringTrader's All-Stars Weekly
- Objective: balanced growth
- Type: meta-portfolio
- Invests in: individual stocks, ETFs tracking stocks, bonds, commodities
- Rebalancing schedule: weekly w/ possible daily exit
- Taxation: 75% short-term capital gains
- Minimum account size: $100,000
TuringTrader’s All-Stars Weekly aims to continually beat the balanced 60/40 benchmark while striking a healthy balance between smooth returns and reduced maintenance effort. The meta-portfolio achieves its objective by combining proprietary momentum and mean-variance optimization strategies with a leveraged and bond-heavy all-seasons style portfolio, resulting in additional diversification benefits. Additionally, with a weekly rebalancing schedule, All-Stars Weekly has moderate maintenance requirements that can fit into a busy lifestyle. The portfolio is perfect for investors seeking balanced growth for larger accounts.
The operation of All-Stars Weekly can be summarized as follows:
- divide capital into three equal-sized tranches
- allocate one tranche each to TuringTrader's Mach-1, Stocks on the Loose, and Rain or Shine
- rebalance between tranches once per month
By combining three portfolios, All-Stars Weekly diversifies across investment styles. As a result, the meta-portfolio achieves higher risk-adjusted returns than its individual components.
All-Stars Weekly combines momentum and mean-variance optimization strategies with a bond-heavy all-seasons style strategy. The resulting meta-portfolio diversifies across multiple trading styles, asset classes, and markets.
All-Stars Weekly achieves a very low concentration risk through its broad diversification and copes with a wide range of market conditions. The successful diversification manifests itself in low portfolio volatility and a portfolio beta of approximately 0.3.
Returns & Volatility
All-Stars Weekly handily beats the 60/40 benchmark in most years with only brief periods of underperformance. As a result, the meta-portfolio steadily expands its lead over the benchmark. Further, the strategy beats the S&P 500 by a wide margin when contemplating the entire economic cycle.
Overall, All-Stars Weekly delivers smooth and steady returns at very low volatility. The Monte-Carlo simulation confirms these claims of a massive upside and a much-reduced risk compared to the 60/40 benchmark.
Account & Tax Considerations
All-Stars Weekly trades frequently and regularly triggers taxable events. Of the portfolio's three component strategies, only Rain or Shine often holds assets long enough to qualify for long-term taxation of capital gains. The other two components will almost always lead to short-term capital gains. Consequently, the strategy works best in tax-deferred accounts. However, because of All-Stars Weekly's solid upside, the portfolio still provides value in taxable accounts.
The strategy's weekly rebalancing schedule not only reduces maintenance efforts but also addresses potential issues with T+2 accounts. To allow for proper position sizing, especially of the potentially expensive individual stock components, All-Stars Weekly requires a minimum account size of $100,000.
- v1, September 2020: Initial release, combining Mach-1, Stocks on the Loose, and Rain or Shine.
- v2, May 2021: Upgraded Stocks on the Loose to its latest revision.
- v3, April 2022: Upgraded Stocks on the Loose and Mach-1 to their latest revisions.
- v4, October 2022: Upgraded Mach-1 to its latest revision.
This table shows the portfolio's key performance metrics over the course of the simulation:
The following chart shows the portfolio's historical performance and drawdowns, compared to their benchmark, throughout the simulation:
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This chart shows the portfolio's annual returns:
The following charts show the Monte-Carlo simulation of returns and drawdowns, the portfolios 12-months rolling returns, and how the portfolio is tracking to its benchmark:
The portfolio last required rebalancing after the exchanges closed on . Due to fluctuations in asset prices, the exact allocations vary daily, even when no rebalancing occurred. The current asset allocation is as follows: