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Tactical Flex

Tactical Flex Strategy Overview

Armour Tactical Flex Strategy applies an advanced, US equity based tactical ETF strategy designed to attempt to increase investment returns by analyzing risk and opportunity in a different, innovative manner.

The strategy is designed to monitor and quantify a wider array of data points outside of just industry standard financial metrics. In addition to analyzing standard financial metrics such as earnings, valuation characteristics, debt, corporate news, leadership changes, technical indicators, and micro or macro-economic influences (among others), the Armour Tactical Flex Strategy additionally quantifies sentiment or perception of the public and financial industry such as, but not limited to, behavioral patterns initiated by economic, political or other world-events that create a context for particular price action in the markets.  In simple terms, we attempt to quantify both opportunity and risk more effectively by developing complex quantitative (objective) metrics that are not limited to a focused investment philosophy (fundamental, technical, etc.) or position type, asset class, or sector. Because asset prices can move positively or negatively from actual financial data or simply the perception by the public, the Armour Tactical Flex strategy takes into account BOTH of these important dynamics to asset pricing.

As monitored data is analyzed daily, we declare either a DefCon (Defensive Condition) or OffCon (Offensive Condition) scalable portfolio position. The movement between these positions determines the action taken on investments. Upon breach of new thresholds, a new defensive or offensive position is declared and corresponding action is taken. Such actions can range from fully invested (100% equity exposure) to fully divested (100% in cash or bonds). There are 5 DefCon level progressions that will dictate when and to what extent we pull assets (equity risk) off the table. Reciprocally, there are 6 OffCon level progressions dictating the reinvestment of those assets. Due to daily monitoring, these allocations have the potential to change quickly during volatile market periods.

Possible DefCon Allocation Levels: 100% 75% 50% 25% 0%

Possible OffCon Allocation Levels: 0% 25% 50% 70% 90% 100%

Key Points of Armour Tactical Flex:

  • Goal of the strategy is long-term capital appreciation.
  • Highly diversified through several sector and broad market ETFs
  • Analysis is ran 4x each day
  • Both strategies are offered in separately managed accounts and an open-end mutual fund. (Please see www.armourfunds.com for additional information on the mutual fund offering)

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