Code can be run out of the box. Extensively commented and shows a number of different scenarios.
Primary endpoint - to find the best strategy according to a few metrics and under several rebalancing frequencies according to fixed 20% allocations.
So across 30 assets, allocation is divided up in increments of 20%.
Period is from July 1999 to present day.
Sections - CTRL+F to find.
SECTION 1 - TAX FREE, NO ADDITIONAL PRINCIPAL ACCOUNT
-As described. We run a leveraged ETF strategy in a tax advantaged account (e.g. 401K, ROTH) with no added principal. We run several submethods.
- tax free, fixed additional principal, no rebalancing
- tax free, fixed additional principal, 120d rebalancing
- tax free, fixed additional principal, 366d rebalancing
SECTION 2 - TAX FREE, FIXED ADDITIONAL PRINCIPAL ACCOUNT
-As described. We run a leveraged ETF strategy in a tax advantaged account (e.g. 401K, ROTH) with a fixed quantity of added principal deposited monthly.
- tax free, no additional principal, no rebalancing
- tax free, no additional principal, 120d rebalancing
- tax free, no additional principal, 366d rebalancing
SECTION 3 - TAXED, GROWING ADDITIONAL PRINCIPAL ACCOUNT, SOFT REBALANCE
-Growing principal implies the principal deposited monthly grows at a slow but steady rate month to month, implying earnings growth over time. -A soft rebalance does not sell assets, but instead uses the monthly principal to try and return to a desired allocation. -This allows the strategy to be run in a taxed account.
- tax free, growing additional principal, no rebalancing
- tax free, growing additional principal, 120d soft rebalancing
- tax free, growing additional principal, 366d soft rebalancing
SECTION 4 - TAXABLE ACCOUNT - including income and income growth throughout 23yr period
This is a final section with a calculator for the optimal strategy given...
a) initial TC
b) TC percent growth rate
c) percent of TC put towards savings
Note - massive bias towards TQQQ that is unwarranted for any sane risk.