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Why it wins

The simple answer is the one that survived

We tested over 200 strategies. Almost all of them lost to this one. Backtested 2007-2026: $50,000 → $1,732,645.

Hypothetical, backtested results over a longer 19-year window than the 6-year figures shown elsewhere on this site (which reflect the underlying ETF's live data only). Years before the managed-futures ETF's 2019 launch use a modeled proxy. Not a promise of future results — see Disclosures.

The real enemy

Most investors lose to themselves

The average investor earns far less than the very funds they own, not because the funds are bad, but because people buy high, panic-sell low, and bail at the worst moment. This "behavior gap" runs several percent a year, enough to halve a lifetime of returns.

Bedrock's biggest edge isn't a secret formula. It's that a machine, unlike a human, simply does not panic.

"The investor's chief problem, and even his worst enemy, is likely to be himself."

— Benjamin Graham
~10%/yr
What the market has returned long-term
~6-8%/yr
What the average investor actually earned*
Timing & fear
Where the difference goes
0
Times a machine panic-sells

*Studies such as Morningstar's "Mind the Gap" and DALBAR consistently find investors underperform the very funds they own, driven by poor timing and emotion.

What Bedrock does differently

Four edges, stacked together

01

Real diversification

Four asset classes that don't move together, so the portfolio doesn't live and die by the stock market alone.

02

Return-stacking, about 1.5x exposure

For every $50,000, the portfolio holds roughly $75,000 in assets. That's leverage, stated plainly, at a small, fixed ratio that never changes, not a bet on market direction like the "leverage timing" that failed below. You are not borrowing money, opening a margin account, or trading options. The extra exposure is built into the ETFs themselves.

03

Automatic crash safeguard

A bond-market signal, the momentum of inflation-protected Treasury securities, is checked daily. When it turns negative, the whole basket moves into short-to-intermediate Treasury bonds until it recovers. Systematic, not discretionary.

04

Automated discipline

The rules are followed exactly, every month, forever, with zero emotion. The edge humans can almost never sustain.

Earned simplicity

The graveyard of what didn't work

We ran the experiments, rigorously, across decades including the 2008 and 2022 crashes. Return-chasing. MACD and RSI. Stop-losses and trailing stops. Buying the dip. Sector rotation. Leverage timing. VIX term structure. Credit spreads. The McClellan Oscillator. Almost every clever technique lost to holding a great basket and staying calm. Exactly one survived out-of-sample, in 2008 and again in 2022: a single, systematic safety switch, tied to inflation and interest-rate momentum, that steps the whole basket aside when it turns negative. That one survivor is built into Bedrock.

// tested_and_retired
Return-chasingMACDRSIStop-lossesTrailing stopsBuying the dipSector rotationLeverage timingVIX term structureCredit spreadsMcClellan OscillatorBreadth confirmation

The winner: hold a diversified basket, stack a cushion, automate it, plus an automatic safeguard that steps aside when the signal turns negative.

To be clear about "leverage timing" above: that means trying to dial the amount of leverage up and down based on market conditions, which failed. Bedrock's own return-stacking is the opposite, a small, constant ratio that never changes. The safeguard is a separate rule deciding whether to hold the basket at all, not how much leverage to use.

// what happened when we tested them
Strategy we testedWhat actually happened
Return-chasingBought last year's winner high, sold low, the behavior gap turned into code
Stop-losses & trailing stopsChopped out by normal volatility, sold low, bought back higher
Sector rotation & leverage timingWhipsawed chasing hot sectors, no durable edge
MACD & RSI signalsWhipsawed in sideways markets, no durable edge
VIX term structure, credit spreads & McClellan OscillatorCoincident or contrarian, not reliably predictive of what's coming next
Breadth confirmation, stacked on the safeguardTested directly, in every combination, lower risk-adjusted return than the safeguard alone
Hold a stacked basket + an automatic crash safeguardWon, in-sample and out-of-sample (2008 and 2022)
The honest DIY question

"Couldn't I just buy the funds myself?"

You could. But the value was never the funds, it's everything around them, and that's where most people quietly lose.

The exact tested recipe

The precise funds, weights, and return-stacking mechanics, tuned across hundreds of backtests. Guess at it and the results slip away.

Disciplined rebalancing

Every month, without fail, without emotion. The automation never forgets and never second-guesses.

The automatic crash safeguard

A daily bond-market signal (inflation-protected Treasury momentum) plus the rotation to safety, the part almost no investor can actually run at home. It weighs how conditions have moved over the past 1, 3, 6, and 12 months, weighted toward the most recent months, then moves the whole basket to Treasuries when that blended signal turns negative, and back when it recovers, a few times in a turbulent year and rarely when markets are calm. It's built to catch inflation- and rate-driven stress, the kind behind 2008 and 2022, not every possible one-day shock. We also tested combining it with other market signals, including breadth, volatility term structure, and credit spreads, to see if stacking more indicators improved the result. It didn't. One well-designed signal, checked rigorously, outperformed every attempt to add more.

It does the work

It watches the market every day and acts the moment the trend turns, the kind of constant, disciplined work no human could keep up with by hand. You just stay invested.

Never panic-selling at the bottom

The big one. In a down year most people panic and sell, locking in the loss. Bedrock never panic-sells; it holds through ordinary dips and steps to safety only by rule, in a genuine crisis.

Let the algorithm do the hard part

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