The Enterprise Strategy

The first automated strategy that we have developed is called Enterprise. The goal of this model is to aid in our Asset Allocation process.

Our original intention was to improve upon the classic 60% Stocks - 40% Bonds portfolio. By adding Commodities and Gold into the mix, risk is even better diversified. This strategy uses just 4 ETFs (SPY, TLT, GLD, DBC) as proxies for the 4 main asset classes, with CASH as an implicit 5’th. It is simple to follow, very stable in drawdown periods and efficient in terms of trading costs. That is why we use it as the CORE model in all of our subsequent strategies.

At a certain level, every other model is “related” to Enterprise. The portfolio template that we use in Signal Sigma always indicates positioning versus the 5 critical asset classes - a nod to the Enterprise Strategy.