Stocks, bonds or gold: holding the best of three
Once a month the whole account moves into whichever of the three has been strongest lately.
The rule
Compare the returns of stocks, long-term bonds and gold over the last three months. Hold the best one. If even the best is down, hold cash.
Why people use it
The three assets react differently to growth, recession and inflation, so one of them is usually doing well. The rule needs three funds and a few minutes a month.
Where it hurts
A three-month window is short and noisy. The rule often jumps into an asset just as its run ends. Everything sits in one asset, so mistakes are costly.
How our bot runs it
The bot ranks SPY, TLT and GLD by their return over 63 trading days and holds the top one. If its return is negative, the account goes to BIL. Reviewed monthly.
Live account
A virtual $100,000 account that follows this rule. Every trade is on the bot's page.
| Bot | Account | Return |
|---|---|---|
| Best of three | $99,863 | −0.14% |