Permanent Allocation Portfolio (Simple)
A classic four-quadrant defensive strategy modeled after Harry Browne's Permanent Portfolio, allocating equally to stocks, long bonds, gold, and short-term cash alternatives to withstand any macroeconomic environment.
Disclaimer: The 'Permanent Allocation Portfolio' is an independent simulation modeled after the historical asset allocation concepts popularized by Harry Browne. This website is purely an educational backtesting tool and is not affiliated with, endorsed by, or sponsored by Harry Browne or any investment institution.
MODEL PORTFOLIO PERFORMANCE HISTORY
2026-08-21
Executive Summary
The Permanent Allocation Portfolio (Simple) model portfolio provides research-grade current exposure tracking and performance analysis. It achieved an inception-to-date Compound Annual Growth Rate (CAGR) of 6.93% with a Maximum Drawdown of -9.33%. Focusing on the most recent 5-year window, the portfolio maintained a CAGR of 8.74%. The model aggregates 21 completed trades with a Sharpe Ratio of 1.09.
🛡️ Permanent Allocation Portfolio (Simple) Drawdown Shield & Downside Protection
Why Drawdown Dictates Longevity →Peak Drawdown Defense
-9.3% (vs -17.3% B&H)
+8.0% shallower drawdown
Downside Efficiency
1.44 Sortino
+0.01 vs 1.43 B&H
Capital Sheltered from Risk
28.5% of Time
Earning Treasury yield during downturns
* Drawdown Shield demonstrates how systematic trend-following bounded historical drawdowns and protected principal capital compared to passive Buy & Hold.
📊 Portfolio Performance Summary
| Metric | 1Y | 5Y | 10Y | Full | ||||
|---|---|---|---|---|---|---|---|---|
| Strategy | B&H | Strategy | B&H | Strategy | B&H | Strategy | B&H | |
| Max Drawdown | -6.28% | -7.09% | -9.33% | -17.32% | -9.33% | -17.32% | -9.33% | -17.32% |
| Sharpe Ratio | 1.67 | 1.56 | 1.31 | 0.84 | 1.29 | 0.96 | 1.09 | 1.05 |
| Sortino Ratio | 2.04 | 1.98 | 1.67 | 1.25 | 1.68 | 1.30 | 1.44 | 1.43 |
| CAGR | 15.97% | 15.77% | 8.74% | 7.40% | 8.34% | 7.49% | 6.93% | 7.66% |
| % Time Invested | 80.8% | 100.0% | 65.1% | 100.0% | 72.3% | 100.0% | 71.5% | 100.0% |
| Trades / Year | 0.0 | 0.0 | 0.8 | 0.0 | 1.2 | 0.0 | 1.2 | 0.0 |
Active Portfolio Composition
| Ticker | Description & Strategy | Style | Max Weight | Current Exposure | Last Action |
|---|---|---|---|---|---|
| SPY | SPDR S&P 500 ETF Trust Excess Return SMA | Investing | 25% | 25% | Invested: Buy 2025-04-30 |
| TLT | iShares 20+ Year Treasury Bond ETF Excess Return SMA | Investing | 25% | 25% | Invested: Buy 2026-06-01 |
| IAU | iShares Gold Trust Buy and Hold | Investing | 25% | 25% | Invested: Buy 2007-03-01 |
| BIL | SPDR Bloomberg 1-3 Month T-bill ETF Excess Return SMA | Investing | 25% | 25% | Invested: Buy 2023-03-03 |
Cumulative Growth Performance
Asset Correlation & Trend Shifts
Analyze how different assets move together and how active strategy trends affect their relationship. Lookback Period:
Portfolio Type / Trend Phase:
Trend Insights
Currently showing the baseline Pearson correlation (r) of the raw asset daily returns over the selected lookback window.
Asset Correlation Matrix
Pearson Correlation Coefficients (r) on Daily Returns -1.0 (Inverse) 0.0 (Neutral) +1.0 (Positive)
Top 5 Diversifier Suggestions
Lowest Pearson correlation (r) candidates evaluated dynamically across all system assets:
Multi-Horizon Correlation View Matrix in Compare Studio →
Alternatives Return vs. Correlation Space
Unified Portfolio Activity Log
Aggregated trade execution history across all portfolio members with portfolio-level weight allocation.
Completed trades reflect standard market cycles. An Open or Mark-to-Market exit denotes an active position (either in the primary asset or a cash/yield sleeve) valued at the current price for reporting purposes. Interest entries record yield accrued from cash or cash alternatives (like BIL) during out-of-market defensive periods.
| Entry Date | Exit Date | Ticker | Type | Allocation | Entry Price | Exit Price | Net Return % | Exit Reason |
|---|---|---|---|---|---|---|---|---|
| 🔒 Active Positions & Recent Execution Signals Hidden Trading on delayed data carries high execution risk. Current allocations, pending next-day rebalances, and active execution signals (last 60 days) require a Premium subscription. Subscribe to Unlock | ||||||||
| 2024-10-11 | 2026-06-01 | CASH (CASH) | Interest | 25% | $1.00 | $1.07 | 6.76% | Interest Income |
| 2025-04-07 | 2025-04-30 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.27% | Interest Income |
| 2023-11-08 | 2025-04-07 | SPY | Completed | 25% | $423.02 | $482.40 | 13.98% | Stop |
| 2024-08-05 | 2024-10-11 | TLT | Completed | 25% | $91.37 | $86.23 | -5.67% | Stop |
| 2021-09-01 | 2024-08-05 | CASH (CASH) | Interest | 25% | $1.00 | $1.11 | 10.85% | Interest Income |
| 2022-11-30 | 2023-11-08 | CASH (CASH) | Interest | 25% | $1.00 | $1.05 | 4.83% | Interest Income |
| 2021-11-16 | 2023-03-03 | CASH (CASH) | Interest | 25% | $1.00 | $1.03 | 2.86% | Interest Income |
| 2022-10-18 | 2022-11-30 | SPY | Completed | 25% | $357.05 | $376.43 | 5.37% | Signal |
| 2022-09-26 | 2022-10-18 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.22% | Interest Income |
| 2022-06-02 | 2022-09-26 | SPY | Completed | 25% | $386.43 | $348.75 | -9.79% | Stop |
| 2022-05-10 | 2022-06-02 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.07% | Interest Income |
| 2020-03-24 | 2022-05-10 | SPY | Completed | 25% | $214.93 | $381.77 | 77.53% | Stop |
| 2019-05-08 | 2021-11-16 | BIL | Completed | 25% | $75.63 | $76.81 | 1.51% | Signal |
| 2021-03-11 | 2021-09-01 | TLT | Completed | 25% | $116.17 | $125.61 | 8.07% | Signal |
| 2021-02-17 | 2021-03-11 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.00% | Interest Income |
| 2020-04-13 | 2021-02-17 | TLT | Completed | 25% | $135.82 | $121.69 | -10.45% | Stop |
| 2020-03-19 | 2020-04-13 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.01% | Interest Income |
| 2020-03-02 | 2020-03-24 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.02% | Interest Income |
| 2018-12-11 | 2020-03-19 | TLT | Completed | 25% | $95.16 | $120.97 | 27.06% | Stop |
| 2019-01-16 | 2020-03-02 | SPY | Completed | 25% | $233.33 | $271.82 | 16.44% | Stop |
| 2010-07-20 | 2019-05-08 | CASH (CASH) | Interest | 25% | $1.00 | $1.04 | 4.49% | Interest Income |
| 2018-12-21 | 2019-01-16 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.15% | Interest Income |
| 2011-08-31 | 2018-12-21 | SPY | Completed | 25% | $94.06 | $220.73 | 134.56% | Stop |
| 2018-02-08 | 2018-12-11 | CASH (CASH) | Interest | 25% | $1.00 | $1.02 | 1.68% | Interest Income |
| 2017-11-07 | 2018-02-08 | TLT | Completed | 25% | $98.12 | $92.30 | -5.97% | Stop |
| 2017-08-08 | 2017-11-07 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.27% | Interest Income |
| 2016-12-08 | 2017-08-08 | TLT | Completed | 25% | $90.47 | $96.46 | 6.57% | Signal |
| 2016-11-15 | 2016-12-08 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.03% | Interest Income |
| 2015-07-02 | 2016-11-15 | TLT | Completed | 25% | $85.37 | $92.61 | 8.43% | Stop |
| 2015-06-10 | 2015-07-02 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.00% | Interest Income |
| 2014-10-28 | 2015-06-10 | TLT | Completed | 25% | $86.02 | $84.89 | -1.36% | Stop |
| 2013-09-13 | 2014-10-28 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.04% | Interest Income |
| 2013-07-16 | 2013-09-13 | TLT | Completed | 25% | $75.06 | $72.02 | -4.09% | Signal |
| 2013-06-21 | 2013-07-16 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.00% | Interest Income |
| 2010-10-12 | 2013-06-21 | TLT | Completed | 25% | $66.24 | $76.08 | 14.79% | Stop |
| 2011-08-09 | 2011-08-31 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.00% | Interest Income |
| 2010-07-26 | 2011-08-09 | SPY | Completed | 25% | $83.28 | $87.61 | 5.15% | Stop |
| 2010-03-26 | 2010-10-12 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.08% | Interest Income |
| 2010-07-01 | 2010-07-26 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.01% | Interest Income |
| 2009-05-22 | 2010-07-20 | BIL | Completed | 25% | $73.46 | $73.47 | -0.04% | Signal |
| 2009-11-11 | 2010-07-01 | SPY | Completed | 25% | $81.88 | $77.67 | -5.20% | Stop |
| 2009-06-30 | 2010-03-26 | TLT | Completed | 25% | $56.67 | $54.87 | -3.23% | Signal |
| 2009-06-08 | 2009-06-30 | CASH (CASH) | Interest | 25% | $1.00 | $1.00 | 0.01% | Interest Income |