The 12% Solution
David Alan Carter's 12% Solution splits capital between two independent monthly momentum sleeves: 60% to the strongest of SPY/QQQ/IWM/MDY/SHY over 3 months and 40% to the stronger of TLT/JNK over 3 months.
- Type: Tactical
- Frequency: monthly
- Asset classes: US Equity, Small Cap, Treasuries, Credit, Cash
- Backtest window: 2007-12-04 to 2026-11-10
- 1Y
- -2.1%
- 3Y
- 17.6%
- CAGR
- 5.0%
- Max DD
- -9.8%
- Sharpe
- 0.48
Methodology
- Allocate 60% to the strongest 3-month asset among SPY/QQQ/IWM/MDY/SHY.
- Allocate 40% to the stronger 3-month asset between TLT and JNK.
Source: Carter, D. A. The 12% Solution.
Headline backtest performance as of 2026-11-10.