Author Topic: Has anyone looked into Alpha Architect?  (Read 1062 times)

lozenge

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Has anyone looked into Alpha Architect?
« on: January 19, 2016, 07:10:19 PM »

Has anyone looked into Alpha Architect?  They offer a robo advisor with active investing and downside protection, with monthly rebalances; and they also offer guidance and tools for doing things yourself.  I'm considering following their DIY guidance, and also possibly going with their robo advisor.

From their site (http://www.alphaarchitect.com/)

Downside protection considers absolute and trending performance rules:

Absolute Performance Rule: Time Series Momentum Rule (TMOM)
Excess return = total return over past 12 months less return of T-Bills
If Excess return >0, go long risky assets. Otherwise, go long alternative assets (T-Bills)

Trending Performance Rule: Simple Moving Average Rule (MA)
Moving Average (12) = average 12 month prices
If Current Price Moving Average (12) > 0, go long risky assets. Otherwise, go long alternative assets (T-Bills).

If both rules are triggered: 100% cash (0% invested)
If one rule is triggered: 50% cash (50% invested)
If no rules are triggered: 0% cash (100% invested)

The Robust Asset Allocation (RAA) Solution: http://blog.alphaarchitect.com/2014/12/02/the-robust-asset-allocation-raa-solution/
Avoiding the Big Drawdown: Downside Protection Investment Strategies: http://blog.alphaarchitect.com/2015/08/13/avoiding-the-big-drawdown-downside-protection-investment-strategies/