Bond Dual Momentum

[ochotona]

10 month moving average seems to work OK for total bond market mutual funds. They've given up returns in the 35 year bond bull market, but maybe they'll be useful now. Maybe that's good enough... decide whether to go to bonds or cash. I think the rest just might be fluff.

[Mr Vacuum]

Does it feel a little strange that the two portfolios' rules could conflict, as in you could be 75% bonds for GEM while the bonds momentum says, no, bonds are risk off, 25% cash? I'm sure it still dampens volatility overall, it just seems like a counterintuitive mix when they're both risk off.

How did the trading compare with moving averages? I recall the book said they work but trade more.

[ochotona]

I use the simple dual momentum plan, where you are either in stocks or bonds. I'd just like to avoid times like now where bonds can take a steep drawdown. There's no contradiction.

[Mr Vacuum]

Understood, thanks for clarifying. I don't recall where I came up with the idea you were talking about 75 GEM, 25 bonds dual momentum.