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ConservativeWeeklyLong-Term U.S. Treasuries Capital preservation

U.S. Treasury

A weekly model on long-term U.S. Treasuries that holds a position only when conditions are favorable — and sits in cash the rest of the time. Built for capital preservation above all.

Hypothetical track record Dec 1988 – May 2026 · 37.4 years · Gross of fees · Long Treasuries + money-market view
+6.23%
Annualized return
gross of fees, hypothetical
−2.94%
Maximum drawdown
peak-to-trough, worst case
88.42%
Batting average
share of positive months
0.96
Sortino ratio
downside-risk adjusted
Growth of $1,000
Hypothetical · log scale · Dec 1988 = $1,000
U.S. Treasury Long Treasuries (Buy & Hold)

A maximum drawdown under 3% across nearly four decades — including the 2022 bond-market collapse that drove long Treasuries down more than 35%. Invested less than 40% of the time, in cash the rest.

Drawdown — the risk argument
Decline from prior peak · model vs benchmark
U.S. Treasury Long Treasuries

Holding long bonds outright meant a drawdown beyond 35% in the 2022 sell-off. By staying in cash unless conditions favored being invested, the model held its worst case to −2.94%.

What this model does

The defensive anchor — preservation above all.

This is the most conservative strategy in the collection. Each week it evaluates long-term U.S. Treasuries and takes a position only when conditions favor it — otherwise it holds cash.

It is invested less than 40% of the time, which keeps it out of harm's way during the deep, prolonged sell-offs that periodically hit the bond market. The aim is not to maximize return; it is to compound steadily while keeping drawdowns minimal. It suits investors who prioritize capital preservation and stability, and it can serve as the defensive anchor alongside more growth-oriented models.

Time invested38.91%
Signals / year2.98
Win / loss ratio106.09%
BenchmarkLong Treasuries
Monthly & annual returns
Hypothetical · most recent first · 2026 back to 1989 · heat-mapped
Full statistics

Everything an auditor would ask for.

Annualized return
6.23%
Max drawdown
−2.94%
Sharpe ratio
0.64
Sortino ratio
0.96
Batting average
88.42%
Win / loss ratio
106.09%
% Time invested
38.91%
Ulcer index
0.68
Signals / year
2.98
Study period
Dec 1988 – May 2026
Span
37.4 yrs
Benchmark
Long Treasuries B&H
Important disclosures

All performance shown is hypothetical and back-tested — it does not reflect actual trading with client assets and has inherent limitations (designed with the benefit of hindsight; may not reflect the impact of real market conditions). Past performance is not indicative of future results.

Results are gross of fees; transaction / custodial fees and taxes are not reflected and would reduce results. This is not an offer to sell or a solicitation to buy any investment. Charts use representative illustrative data; final disclaimer wording to be confirmed with counsel / compliance.

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