TuringTrader's All-Stars Monthly

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Key Facts

  • meta-strategy
  • re-balanced monthly

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Summary

All-Stars Monthly is a meta-strategy combining three proprietary portfolios from TuringTrader.com. We introduced the strategy in December 2020.

All-Stars Monthly aims to deliver strong growth without applying leverage. At the same time, the portfolio keeps risk at bay through diversifying across asset classes and investment styles.

With its monthly rebalancing schedule, All-Stars Monthly especially appeals to investors with a busy lifestyle.

Performance

The chart above shows the portfolio’s historical performance and drawdowns, compared to their benchmark, throughout the simulation. The chart below shows the portfolio’s annual returns:

This table shows the performance metrics for TuringTrader's All-Stars Monthly:

Asset Allocation

The portfolio last required rebalancing after the exchange's close on n/a. Due to fluctuations in asset prices and portfolio values, the exact allocations vary daily. The current asset allocation is as follows:

- Delayed Data -

TuringTrader.com, All-Stars Monthly: A low-volatility meta-strategy

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Review

Strategy Rules

The operation of All-Stars Monthly can be summarized as follows:

  • divide capital into three equal-sized tranches
  • allocate one tranche each to TuringTrader's Round-Robin, Straight Four, and Bonds-NOT
  • rebalance between tranches once per month

By combining three portfolios, All-Stars Monthly diversifies across investment styles. As a result, the meta-strategy achieves higher risk-adjusted returns than the individual components.

Diversification

All-Stars Monthly aims to combine the benefits of a healthy diversification across multiple asset classes with those of tactical asset allocation. Two of the three tranches, Round-Robin and Straight Four, focus on growth through investing in the stock market. To add stability, the third tranche, Bonds-NOT, focuses on investments in debt instruments. Each tranche tilts its allocation to the current market environment, continually shifting the exact allocations between asset classes.

All-Stars Monthly combines momentum and mean-variance-optimization portfolios in a single strategy. This diversification across trading styles improves portfolio decisions' quality to cope with a wide range of market scenarios.

Returns & Volatility

All-Stars Monthly handily beats the 60/40 benchmark in most years. During market downturns, the portfolio makes further gains over this benchmark. Over the full economic cycle, All-Stars Monthly leads over the S&P 500 by a wide margin.

The chart above shows how All-Stars Monthly continually expands its lead over the 60/40 benchmark while mostly avoiding deep downturns.

Account & Tax Considerations

All-Stars Monthly trades frequently and regularly triggers taxable events. Consequently, the strategy works best in tax-deferred accounts. However, due to its continuous and robust growth, it may also provide value in taxable accounts.

The strategy's monthly rebalancing schedule not only reduces maintenance efforts but also addresses potential issues with T+2 accounts.

To allow for proper position sizing, All-Stars Monthly requires a minimum investment of $7,500.