Strategy

Four strategies.
You choose.

On average 57% less drawdown71 research rounds64 portfolios validated

Every strategy was validated across 71 research rounds, 64 portfolios, and 12 walk-forward time windows. Including the COVID crash, the inflation crisis, and Trump tariffs.

Defensive

Maximum protection

Defensive reacts earliest and strongest. When signals switch to Cautious, the position is fully reduced. Fast Exit detects extreme market stress immediately.

57% less drawdown

Structural cost: ~8%/year.

Frequent starting point
Balanced

Protection meets return

Balanced stays 45% invested when signals are cautious. Enough protection against the drawdown, enough participation in the recovery.

31% less drawdown

Structural cost: ~2.4%/year.

Growth

Nearly fully invested

Growth stays nearly fully invested in everyday conditions. Only during extreme weakness does Crash Guard step in, catching the recovery after market lows.

2% less drawdown

Structural cost: ~0.03%/year.

Observer

All signals visible

Observer shows all 16 signals (Favorable, Cautious, Neutral). Your performance is reported as Buy & Hold. You see the state and decide for yourself.

Pure market return.

Three mechanisms. One system.

Every strategy combines these three building blocks differently. The difference: when and how strongly they activate.

Strategy
Buy & Hold
Entry & Exit

The exit threshold determines when the strategy reduces the position. The position size determines how much: from 0% (fully out) to 75% (nearly fully invested).

Fast Exit

Detects extreme market stress and reduces immediately, before the regular signal reacts. First line of defense at the onset of a crash. Built into Defensive and Balanced.

Crash Guard

At the bottom, Crash Guard holds the position at 100%. Panic lows have historically been the best re-entry points. It catches the recovery. Active in Balanced and Growth.

Defensive

On average 57% less drawdown, validated over 12 years.

The strongest protection level. When signals switch to Cautious, Defensive fully reduces the position (0% invested). With the highest exit threshold (45%) it reacts earlier than any other strategy.

COVID: markets -34%, Defensive at -15% in backtest (median)

COVID crash, 2022 inflation crisis, Trump tariffs: the strongest protection in every tested extreme scenario. Price: ~8% forgone return per year.

  • Full exit when Cautious (0% invested)
  • Exit threshold at 45%, reacts earlier than other strategies
  • Price of protection: ~8% forgone return per year in bull markets
Crash comparisonStarting value €50,000

What's left at the lowest point?

Buy & Hold
€33,150-33.7%
Defensive
€42,500-15.0%

COVID crash 2020, median over 64 portfolios · avg. across the full validation: 57%

+€9,350 saved
Protection vs. costHistorically validated

Drawdown reduction and annual forgone return

Drawdown red.Cost/yr
Defensive
57%
~8%
Balanced
31%
~2.4%
Growth
2%
0.03%

Median over 64 portfolios, 12 years

Balanced

31% less drawdown at ~2.4% forgone return per year.

Better risk-adjusted return than Buy & Hold. 31% less drawdown at ~2.4% forgone return per year. The sweet spot. Balanced stays 45% invested when signals are cautious: enough protection against the drawdown, enough participation in the recovery. Crash Guard and Fast Exit are built in.

  • 45% invested when Cautious, enough to catch the recovery
  • Exit threshold at 38%, fewer false alarms
  • Crash Guard + Fast Exit built in: protection at the start and recovery at the end
  • 3-day cooling-off instead of weekly rebalancing
Growth

Stay fully invested. Practically free. Crash Guard for extreme events.

Growth stays nearly fully invested in everyday conditions. Only during extreme weakness does Crash Guard step in. 2% drawdown reduction at ~0.03% forgone return per year, practically free.

  • Nearly fully invested, the strategy rarely intervenes in normal conditions
  • Crash Guard built in, catches the recovery after market lows
  • 0.03% forgone return vs. Buy & Hold, practically free
  • 2% drawdown reduction during real crashes (COVID, 2022)
Growth vs. Buy & HoldMedian 64 portfolios
Growth
Buy & Hold

Beats B&H in 66% of portfolios with practically no forgone return.

Median over 64 portfolios, 12 years

0.03% forgone return

Observer: full transparency, no autopilot

Observer shows all 16 signals but nothing happens automatically. Your performance is reported as Buy & Hold. You get full signal transparency and decide for yourself what to do with it.

Why Observer exists:

Not everyone wants automatic position adjustments. Observer delivers full signal transparency without changing the strategy. You see the state, you decide what to do with it.

Methodology

Every number is validated

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Research rounds

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Stocks & ETFs

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Portfolios

0/12

Walk-forward

0 Y.

Tested period

Every number on this page comes from walk-forward-validated backtests: one time window is used for calibration, the next for testing (Leave-One-Year-Out). Every configuration holds up in every individual year. No cherry-picked periods, no overfitting to past data. Past performance is not an indicator of future results.

All strategies compared

DefensiveBalancedGrowth
Avg drawdown red.57%31%2%
Avg forgone return/year~8%~2.4%~0.03%
Sharpe (return/risk)Buy & Hold: 0.890.520.960.88
Rebalancing3-day cooling-off3-day cooling-off3-day cooling-off
Fast Exit
Crash Guard

Fast Exit and Crash Guard are built into the respective strategies, no optional toggles.

Average across 64 portfolios, 12 walk-forward windows (2014–2025). Past performance is not an indicator of future results.

Not sure which strategy?

Balanced is the default setting. You can switch between all strategies at any time.

Beginners

The 3 strategies + Observer work out of the box. Tooltips explain every term directly in the tool, and the signal reference walks you through the methodology step by step. No prior knowledge needed.

Power users

Signal configuration: adjust EMA periods, thresholds, and weights. Backtest sandbox: test every variant on your own portfolio. Walk-forward analysis: see whether your adjustments hold up over 12 years.

Test your strategy on your portfolio

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