Targeted Risk Strategy (TRS)
The Milwaukee Company’s Targeted Risk Strategy (“TRS”) is rules-based, trend following strategy that will invest in either a “Primary” ETF or an “Alternative” Treasury bond ETF, depending on the individual trend of each Primary ETF and its corresponding Alternative ETF. Trend following is based on the well-established premise that over shorter time frames investments that are trending lower tend to continue moving lower, and vice versa.
TRS uses a “Trend Signal” and a “Return Signal” (see sidebar) to evaluate the relative performance of each Primary ETF and the corresponding Alternate ETF. TRS will invest in the Primary ETF whenever its Trend signal is positive, and will invest in the Alternative ETF if the Trend Signal and the Return signal indicate the current trend of the Alternate ETF is more favorable than the current trend of the corresponding Primary ETF.
Model Portfolio Weights
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TRS regards the Trend Signal for a Primary ETF to be positive whenever its 20-day simple moving average exceeds its 200-day simple moving average.
TRS regards the Return Signal for a Primary ETF to be positive whenever the trailing 6-month return for the Primary ETF is greater than the 6-month return of its corresponding Alternate ETF.
The Milwaukee Company℠ is a tradename of Estate Counselors, LLC. The information provided herein is believed to be correct and has been obtained from sources that we consider reliable, but we do not guarantee that this information is accurate or complete. All expressions of opinion reflect our judgment at the present time, but are subject to change. Nothing found herein is intended to be a substitute for personal investment advice. The investments discussed herein are risky in nature and involve a substantial risk of loss, and we do not in any way warrant or guarantee the results you will experience.