The Three-Way Model strategy was developed by Ned Davis of Ned Davis Research.
It uses three funds and the a simple moving average to determine when to invest and when to hold cash.
On average, the fund allocates 37% to equities, 32% to bonds, and 31% to gold and cash.
This strategy trades once per month.
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Low | Average | High | |
|---|---|---|---|
1-Year | -24.9% | 12.3% | 67.5% |
3-Year | -2.8% | 11.6% | 34.8% |
5-Year | 0.5% | 11.4% | 26.7% |
10-Year | 5.7% | 11.5% | 20.9% |
Portfolio | 60/40 | S&P 500 | |
|---|---|---|---|
Annual Return | 11.5% | 9.3% | 10.3% |
10Y Annual Return | 7.8% | 7.9% | 12.2% |
Sharpe Ratio | 0.59 | 0.51 | 0.43 |
Max Drawdown | -24.9% | -29.7% | -50.97% |
Volatility (annualized) | 11.9% | 9.9% | 15.4% |
Dot Com Annual Return | 6.8% | -4.2% | -14.60% |
Great Financial Crisis Annual Return | 9.5% | -0.3% | -5.66% |
Positive Periods | 66.9% | 65.8% | 63.3% |
**S&P 500 backtest to 1972 and 60/40 backtest to 1970
