Protective Asset Allocation

PAA (Protective Asset Allocation) is Keller & Keuning's answer to a common tactical allocation weakness: strategies that stay fully invested until a signal flips, then move all at once. Rather than an all-or-nothing switch, PAA scales gradually into cash as market breadth deteriorates — the more of its 12-asset universe that loses momentum, the larger the defensive cushion becomes, well before a full-blown downturn. Within its risk-on sleeve, PAA ranks assets by momentum and holds the six strongest, each still required to show its own positive trend to earn a place in the portfolio. Its defensive capital splits between two safety assets, always favoring whichever offers the stronger "crisis alpha" at the time. This gradual, breadth-driven approach to risk reduction is what gives Protective Asset Allocation its name — protection that scales with the danger rather than arriving all at once.

PAA uses no leverage. For more details, see Protective Asset Allocation.