A professional in a suit gestures in front of digital financial market charts.

A Simple Monthly Asset Rotation Strategy

ByOddmund Groette Trading strategies

A Simple Monthly Asset Rotation Strategy explores a disciplined way to shift capital toward stronger-performing assets while avoiding unnecessary trading.

The approach is systematic, easy to follow, and suitable for investors who prefer to make decisions on a monthly schedule rather than react to short-term market noise.

In this article, we will examine the logic behind the strategy, its potential benefits, and the key considerations for evaluating it.

A Simple Monthly Asset Rotation Strategy

We backtested the trading rules on the following ETFs:

  • SPY: US stocks
  • EFA: International developed stocks ex. USA.
  • EEM: Emerging markets stocks
  • GLD: Gold
  • TLT: US long-term bonds

From 2003, we get the following result (monthly bars):

A line chart displays rising portfolio equity and overall financial market growth over time.
Discover how a Simple Monthly Asset Rotation Strategy achieves consistent portfolio equity growth.

Performance

  • No. of trades: 91
  • Average gain per trade: 3.9%
  • Win ratio: 57%
  • Profit Factor: 2.5
  • Annual returns (CAGR): 13.7%
  • Exposure/time in the market: 100%
  • Risk-adjusted return: 13.7% (CAGR divided by time spent in the market (1))
  • Max drawdown: -24%

Trading Rules

We have the full code for this strategy for TradingView, Python, Metatrader, Ninjatrader, Tradestation, and Amibroker on our website – Platinum/Annual membership:

We made the following trading rules:

🔒 These trading rules are for members only.

Get access here

I’ve got an Msc from Heriot-Watt University, Edinburgh (1996), in addition a to a business administration degree the Norwegian School of Management (BI – 1994). Did my mandatory military service in between.

After university, I worked two years as an auditor (1996-1998).

I co-founded Aksjeforum.com in 1998/99 - one of the first websites about trading and investing in Norway. It was later acquired by Digi.no in 2001.

I have written 4 books about trading (in Norwegian). One of them has sold 30,000 copies, a record for a financial book in Norway.

From 2001 until 2018 full-time independent prop trader (Series 7 in 2001) and investor.

2018-today: Investor, writer, analyst.

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