ARES Strategy

ARES is a systematic risk-on / risk-off strategy. An execution algorithm parameterizes a curated set of macro and technical indicators to estimate the current health of the market and condense it into a single regime signal. When the signal reads risk-on, ARES holds broad US equity exposure. When it flips to risk-off, ARES rotates into cash or short-duration defensive instruments to protect capital through deteriorating regimes. Universe: liquid US equity ETFs and index instruments + cash / short-term treasuries. Holding period: medium-term (weeks to months), driven by regime persistence. Decision inputs: macro factors (growth, liquidity, credit), technical filters (trend, breadth, volatility), with parameters calibrated using out-of-sample validation. 21-year backtest vs benchmarks (S&P 500 / Nasdaq 100): Total Return: 1388.77% vs 833.41% (S&P) / 2257.23% (NDX) CAGR: 14.18% vs 11.20% / 16.21% Volatility: 11.88%, lowest of the three Sharpe: 1.18 vs 0.78 / 0.90, best in class Sortino: 1.16, best in class Max Drawdown: -15.61% vs -55.19% / -53.40% Calmar: 0.91 vs 0.20 / 0.30 Key strengths: Drawdown control: max DD reduced by ~70% versus passive benchmarks. Risk-adjusted returns: highest Sharpe and Sortino in the comparison. Capital efficiency: Calmar ratio 3x–4.5x stronger than buy-and-hold. Equity-like compounding with bond-like volatility (sub-12% annualized). ARES is designed for investors seeking equity participation with materially lower downside risk than passive indices. Backtest results are based on historical data and do not guarantee future performance.