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iQ Monthly Risk On / Risk Off Model

  • No down years since 1980

  • 10.19% max drawdown

  • 20% downside capture ratio

CLICK HERE for a complimentary Model Fact-card.


The iQUANT.pro Monthly Risk On / Risk Off Model seeks to provide positive returns regardless of the directions of the economy or financial markets by tactically allocating between stocks and bonds on a monthly basis.


The iQUANT.pro Monthly Risk On / Risk Off Model is one-of-a-kind…

The Model utilizes the following four non-correlated factors to determine an allocation between stocks (Risk On) and bonds (Risk Off).

  • Technical (price to moving average)

  • Macro (movement of the US Dollar)

  • Valuation (S&P 500 P/E and Earnings Yield)

  • Seasonal (six months in, six months out)


Each of the aforementioned factors account for 25% of the Model’s allocation.  If all four of the factors are “risk on”, then 100% of the Model is allocated to stocks.  If 2 of the 4 indicators are “risk on”, then 50% of the Model allocates to stocks while the other 50% allocates to bonds.

When the Model allocates to stocks, it utilizes the following (monthly) large-cap screen:

  • Start with the largest 750 locally-traded stocks

  • Sort by Operating Earnings Yield + Share Buyback and select the top 20%

  • Sort by Earnings Growth Persistence and select the top 20%

  • Sort by Earnings and Price Momentum and select the top 10