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Risk Parity

All Weather risk parity: equal risk contribution across asset classes

Risk Parity (Bridgewater-style)

3Y
Total Return
+25.9%
3Y
Sharpe Ratio
0.62
3Y
Max Drawdown
-6.9%
3Y
Win Rate
55.9%
3Y
Alpha
-15.1%
3Y
Comp. Score *
0.10
Risk Parameters
Max Allocation10.5%
Stop Loss6.9%
Take Profit5.0%
Max DD Tolerance6.9%
Rebalanceweekly
Execution Guidance
Order TypeLimit
Entry RuleBuy 0.5% below market in uptrend.
TimingSAFE TO BUY. *
ScalingEnter in 3 tranches over 1-2 weeks.
Positions — Vol-Adjusted Sizing
SymbolActionVol Stop LossTake ProfitSizeLinks
TIP BUY 4% 3.5% below entry 3.0% above entry 21.0% TVYH
IEF BUY 6% 3.5% below entry 3.0% above entry 21.0% TVYH
GLD BUY 23% 6.7% below entry 4.8% above entry 10.9% TVYH
EFA BUY 16% 4.8% below entry 3.4% above entry 15.3% TVYH
SPY BUY 17% 5.0% below entry 3.6% above entry 14.6% TVYH
DBC BUY 17% 5.0% below entry 3.6% above entry 14.6% TVYH
TLT BUY 13% 3.7% below entry 3.0% above entry 19.9% TVYH
VNQ BUY 15% 4.4% below entry 3.2% above entry 16.5% TVYH
▶ For Passive Investors (Buy & Hold)

This strategy has moderate long-term potential but requires monitoring. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from -17% drawdown to return 37% long-term. - Exit rule: Review annually. Exit if strategy underperforms its benchmark for 3 consecutive years.

Avg 5Y Return
22.9%
Avg 5Y Sharpe
0.08
10Y Return
37.0%
10Y Sharpe
-0.09
HODL Composite
0.13
Consistency
53%
Suitable for passive
No