Forma Financial Tools

TV1

Current Allocation %

VTI = Vanguard Total Stock Market ETF, VGIT = Vanguard Intermediate Term Bond ETF (IEF is a suitable alternative)

The TV1 model is based on re-allocating at the beginning of each calendar month, however the live allocation is provided since additional studies show that re-balancing as often as daily is similarly effective. Data is a delayed up to 20 minutes, or longer. Provided for informational purposes only and not a recommendation.

The TV1 is an actively managed portfolio using just two assets and once-per-month management — although one may adjust to match the current allocation as often as daily. There is zero leverage involved in this strategy allowing for larger allocation without excessive tail risk. The edge comes from the incremental adaptability to current market conditions allowing one to reduce size before and during high volatility corrections and add size during extended rallies.

  • 25+ years of history
  • No losing years 
  • 8.04% average annual growth 
  • -6.92% worst draw down 
  • Sharpe Ratio 1.00
  • Sortino Ratio 1.64 

This is a simple strategy. You only need the ability to buy ETFs and/or mutual funds. No options, futures, shorting, or forex is required. You can manage this portfolio spending less than 30-minutes per month. 

Performance

Graph represents the hypothetical growth of one dollar. Note: monthly data may not reflect additional volatility and drawdown risk during the month. 

Questions about this strategy? Ask in the Slack general channel.

MAW

Current Allocation %

VTI = Vanguard Total Stock Market ETF, TLT = 20 Year Bond, GLD = Gold, DBC = Commodities , VGIT = Vanguard Intermediate Term Bond (IEF is a suitable alternative)

The MAW model is based on re-allocating at the beginning of each calendar month, however the daily allocation is provided since additional studies show that re-balancing as often as daily is similarly effective. Data is a delayed up to 20 minutes, or longer. Provided for informational purposes only and not a recommendation.

The Modified All Weather (MAW) strategy is based on Ray Dalio’s All Weather portfolio but includes a sizing feature to reduce exposure to riskier assets during heightened market volatility. The strategy uses five diversified assets which provides us with a higher level of confidence that performance will continue into the future. 

  • 12+ years of history
  •  -2.12% worst year 
  • 7.69% average annual growth 
  • -8.8% worst draw down 
  • Sharpe Ratio 1.15
  • Sortino Ratio 1.95 

This is a simple strategy. You only need the ability to buy ETFs and/or mutual funds. No options, futures, shorting, or forex is required. You can manage this portfolio spending less than 60-minutes per month. 

Performance

Graph represents the hypothetical growth of one dollar. Note: monthly data may not reflect additional volatility and drawdown risk during the month. 

Questions about this strategy? Ask in the Slack general channel.

Market Indicators

SPX Term Structure

Treasury Yield Curve

Sector Strength

Hottest Sector

2nd Hottest Sector

Coldest Sector

2nd Coldest Sector

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