The 12% Solution Strategy

[NilesMike]

(03-02-2021, 08:48 AM)fenders53 Wrote:

(03-02-2021, 08:03 AM)NilesMike Wrote:

(03-01-2021, 10:17 PM)fenders53 Wrote: Thanks, This actually looks like one of David's high flier ports with the 3X leverage.  I will check them out.  Will I be able to back test these from 2008 and catch the financial crisis? That's a must before I put big money in anything.  Anyway I will read up on them.

Convertible bonds going back to 1998

https://www.portfoliovisualizer.com/test...sisResults

CAGR 12.9%
Drawdown <9%
1 negative year and 73% positive monthly returns

And he has a port that uses those convertible bonds with nearly identical results.  I don't know who invented these strats but they are strikingly similar from one author to another.  VERY similar CAGR and drawdown.  I just happen to have more details because the guy wrote a book.  12%+ and sub 10% drawdown is the range without leveraging.  3X Leveraging is going to get you a 20% monthly drawdown at some point, but if the entire year isn't anything like that, then it isn't so bad.  It comes with the 40% up years and one of those just happened.  It all depends on ones stomach for a short term beatdown.

I think they all may spin off Gary Antonacci's Dual Momentum strategy but I'm not sure.