Anyone else here doing QTAA?

madsquopper

Recycles dryer sheets
Joined
May 25, 2006
Messages
226
Location
Vienna
It stands for Quantitative Tactical Asset Allocation. If you're curious the link is here https://papers.ssrn.com/sol3/papers.cfm?abstract_id=962461. I enjoy being somewhat (but not overly) active in managing my portfolio and started using this method about 5 years ago when it was time to simplify and get somewhat more conservative. It is indeed a timing method, but not very complicated. What I like about it is that it reduces drawdown risk without sacrificing very much in overall performance.

In my case, basically a 60/40 split but I use about a dozen index ETF's to subdivide the asset categories and then trade on a monthly basis (in practice maybe one or two trades/month and often none). Trading costs are basically zero since I'm using the commission free ETF's at Fidelity.

So far have been happy with the results. I compare against Fidelity Global Balanced Fund FGBLX and have done slightly better over the past 5 years.

Larry
 
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