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Timing Overlay

Timing Overlay

Use this feature to time the FT Rebalance equity curve.

Read the latest timing blog post here: /timing-ft-rebalance-strategy/

  • When the short MA is above the long MA, FT Rebalance has a buy signal for the FT Rebalance strategy and will show the returns of the FT Rebalance Strategy.
  • When the long MA is above the short MA, FT Rebalance has a sell signal for the FT Rebalance strategy and will show the returns of the safety asset.

picture and numbers of drawdown minimizer

  1. Basis- Select which asset to time. The default setting is to derive trading signals from the FT Rebalance Strategy. But, alternatively you can derive buy and sell signals from any security. For example, you can buy and sell the FT Rebalance strategy based on a 50 day over 200 day cross of the S&P 500.
  2. Safety Asset- Set the security to trade retreat to when FT Rebalance gets a sell signal. So, in the default setting, FT Rebalance will show the results of switching back and forth between money market (VMMXX) and the FT Rebalance strategy based on a 50 day over 200 day moving average.
  3. MA Cross- Set the length of the long and short moving average. All moving averages are exponential moving averages.
  4. Trade Delay- This is the number of market days to execute the sell after getting a sell signal. ex: Long MA crosses above the Short MA on June 1. A one day trade delay would result in switching from the FT Rebalance strategy to the safety asset on June 2.