Ray Dalio All Weather Portfolio 2x Leveraged: Rebalancing Strategy

Data Source: from March 2010 to February 2024
Consolidated Returns as of 29 February 2024

Managing the Ray Dalio All Weather Portfolio 2x Leveraged with a yearly rebalancing, you would have obtained a 7.35% compound annual return in the last 10 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.14%.

How do returns and drawdowns change, implementing different rebalancing strategies?

Rebalancing Strategies

In order to keep risk under control, you should rebalance assets quotes from time to time, so to keep them at the original percentage of the asset allocation.

Rebalancing can be performed in several ways.

At fixed time intervals:
  • Yearly: Jan 1st
  • Half Yearly: Jan 1st, Jul 1st
  • Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
When a component (at least one) diverges from its original weight beyond a certain threshold (e.g. 5% or 10%).

Portfolio Returns as of Feb 29, 2024

Implementing different rebalancing strategies, the Ray Dalio All Weather Portfolio 2x Leveraged guaranteed the following returns.

According to the available data source, we assume we built the portfolio on March 2010.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
RAY DALIO ALL WEATHER PORTFOLIO 2X LEVERAGED RETURNS
Period: March 2010 - February 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Feb 29, 2024
Rebalancing Strategy 1Y 5Y 10Y MAX
(~14Y)
Yearly Rebalancing 9.07 (1) 6.87 (5) 7.35 (10) 11.14 (14)
Half Yearly Rebalancing 8.30 (2) 5.95 (10) 7.20 (20) 11.14 (28)
Quarterly Rebalancing 9.38 (4) 7.64 (20) 8.14 (40) 12.21 (56)
5% Tolerance per asset 8.88 (2) 6.78 (14) 8.08 (22) 12.03 (33)
10% Tolerance per asset 9.31 (1) 5.66 (4) 7.03 (7) 10.71 (10)

In order to have complete information about the portfolio, please refer to the Ray Dalio All Weather Portfolio 2x Leveraged: ETF allocation and returns page.

Performances as of Feb 29, 2024

Historical returns and stats of Ray Dalio All Weather Portfolio 2x Leveraged, after implementing different rebalancing strategies.

RAY DALIO ALL WEATHER PORTFOLIO 2X LEVERAGED PERFORMANCES
Period: March 2010 - February 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 11.14 (14) 16.00 0.70 -37.02 0.30
Half Yearly Rebalancing 11.14 (28) 15.96 0.70 -40.60 0.27
Quarterly Rebalancing 12.21 (56) 16.38 0.75 -41.85 0.29
5% Tolerance per asset 12.03 (33) 16.38 0.73 -41.37 0.29
10% Tolerance per asset 10.71 (10) 16.20 0.66 -40.68 0.26
(*) Since Mar 2010 (~14 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Feb 29, 2024

Historical Drawdowns of Ray Dalio All Weather Portfolio 2x Leveraged, after implementing different rebalancing strategies.

RAY DALIO ALL WEATHER PORTFOLIO 2X LEVERAGED DRAWDOWNS
Period: March 2010 - February 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-37.02
Jan 2022 - In progress
-40.60
Jan 2022 - In progress
-41.85
Jan 2022 - In progress
-41.37
Jan 2022 - In progress
-40.68
Jan 2022 - In progress
-15.40
Feb 2015 - Jun 2016
-14.96
Feb 2015 - Jun 2016
-14.73
Feb 2015 - Jun 2016
-13.88
Feb 2015 - Jun 2016
-15.09
Feb 2015 - Jun 2016
-14.01
Aug 2016 - Nov 2017
-12.60
Aug 2016 - Aug 2017
-12.99
Aug 2016 - Aug 2017
-11.77
Aug 2016 - Aug 2017
-12.68
Aug 2016 - Aug 2017
-11.91
Feb 2018 - Mar 2019
-11.91
Feb 2018 - Mar 2019
-11.33
Feb 2018 - Mar 2019
-11.51
Feb 2018 - Mar 2019
-11.29
Feb 2018 - Mar 2019
-10.15
Aug 2020 - May 2021
-10.02
Aug 2020 - Dec 2020
-11.19
May 2013 - Feb 2014
-10.75
May 2013 - Feb 2014
-10.80
May 2013 - Feb 2014
5 Worst Drawdowns - Average
-17.69 -18.02 -18.42 -17.86 -18.11
10 Worst Drawdowns - Average
-11.51 -11.92 -12.13 -12.28 -12.66

For a deeper insight, please refer to the Ray Dalio All Weather Portfolio 2x Leveraged: ETF allocation and returns page.