TuringTrader's All-Stars Weekly

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Key Facts

  • meta-strategy
  • +42% leverage
  • re-balanced weekly

Tags

Summary

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

All-Stars Weekly aims to deliver aggressive growth by applying +42% leverage. At the same time, the portfolio keeps risk at bay through diversifying across multiple investment styles, namely momentum, and volatility targeting.

With its weekly rebalancing schedule, All-Stars Weekly 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 Weekly:

Asset Allocation

The portfolio last required rebalancing after the exchange's close on n/a. The current asset allocation is as follows:

- Delayed Data -

Review

Strategy Rules

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

  • divide capital in three equal-sized tranches
  • allocate one tranche each to TuringTrader's Dos Equis, 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-strategy achieves higher risk-adjusted returns than the individual components.

Diversification

All-Stars Weekly uses +42% leverage with a typical asset allocation as follows:

  • 86% U.S. Stocks
  • 43% U.S. Treasuries
  • 9.8% Gold
  • 3.1% Commodities

All-Stars Weekly combines momentum, and volatility targeting portfolios in a single strategy. In addition to its diversification across trading styles, the meta-portfolio covers a variety of asset classes and markets. As a result, All-Stars Weekly significantly reduces the portfolio's concentration risk, while improving the ability to cope with a broad range of market conditions.

Returns & Volatility

All-Stars Weekly handily beats the 60/40 benchmark in most years. Further, when contemplating the full economic cycle, the strategy beats the S&P 500 by a wide margin.

Overall, All-Stars Weekly delivers smooth returns at very low volatility. The Monte-Carlo simulation confirms these claims of a massive upside and a much-reduced risk when compared to the 60/40 benchmark.

Account & Tax Considerations

All-Stars Weekly trades frequently and regularly triggers taxable events. However, two of the three tranches, namely Dos Equis and Rain or Shine, often hold assets long enough to qualify for long-term taxation of capital gains. While the strategy works best in tax-deferred accounts, it 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.

All-Stars Weekly makes use of leveraged ETFs, as well as volatility-linked ETPs, which are considered high-risk instruments. Many brokerages require signing additional disclosures before allowing investors to use these instruments in their accounts. Because we use these products in tandem with inversely correlated assets, we believe our use of these instruments to be responsible.

To allow for proper position sizing, especially of the potentially expensive individual stock components, All-Stars Weekly requires a minimum investment of $100,000.