The Duration Rotation Model is no longer available on a subscription basis. It is available institutionally and in separately managed managed accounts through Capital Advisors 360, LLC. You may inquire about possible options by emailing robh@capitaladvisors360.com
Our research has found that US Treasury ETFs provide substantial negative correlation to stock market returns during negative market environments. This is something that foreign, corporate, and other bond ETFs fail to achieve. By allocating a portion of your portfolio to US Treasury ETFs, you may be able to cushion your portfolio against steep drawdowns. By rotating between those ETFs, you may be able to achieve superior returns.
The Duration Rotation Model trades exclusively in US Treasury Bond ETFs. The ETFs used are TLT (20+ year), IEF (7-10 year), and SHV (1-3 month). By rotating among them it aims to accomplish the following:
- Benefit from long-term treasury returns with reduced volatility.
- Provide uncorrelated returns to stock indices, with negative correlation during times of stress.
Multiple long and short-term measures of price action are utilized to find reasonable entry points in highest ranked ETF among the group. Signals are determined each night for the next day’s trading.
It should not be assumed that the methods, techniques, or indicators presented here will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. There is a high degree of risk in trading.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
