We decide how we will respond to a falling market before it falls. Every portfolio has written rules for when to reduce risk, so decisions are made with a clear head, not in a headline.
Breakaway Financial Group manages investment risk with rules set in advance. Each model portfolio has written steps for reducing exposure when trends weaken and adding it back as they recover. Your risk profile sets how much you hold in assets that tend to behave differently from stocks. Each month we check our decisions against those rules.
The hardest investment decisions come when markets are falling and headlines are loud. That is exactly when emotion pushes people to sell everything or freeze.
We make those decisions in advance instead. Each portfolio's rulebook says what will happen, under what conditions, and in what size steps. When the moment comes, your advisor is following a plan, not reacting to the news.
| Safeguard | What it does | Where it applies |
|---|---|---|
| Market trend rule | When the broad market falls below its long-term average (roughly the last 10 months), the stock share steps down gradually. The difference moves to bonds, gold, trend-following funds or cash, and is added back as the trend recovers. | Core, global quality leaders, industry and theme portfolio |
| Leadership-loss rule | A company that drops below its long-term trend and badly trails the market two months in a row is trimmed a quarter at a time. Its place goes to the next company in line. | Global quality leaders, dividend-growth portfolio |
| Step sizing and full exits | Positions grow and shrink in set steps as strength rises or fades, with a full exit if a long-term trend breaks. | High-conviction portfolio |
| Crypto trend gauge | Bitcoin's trend sets the crypto share: fully invested, half in cash or all in cash. | Crypto portfolio (opt-in only) |
| Interest-rate tilt | When longer-term bonds are in a downtrend, part of that money shifts to shorter-term and inflation-protected bonds. | Diversifiers, short-term reserve |
| Rebalancing bands | Holdings are rebalanced only when they drift well away from target, which keeps trading costs and taxes down. | All portfolios |
Every risk profile except Aggressive holds Diversifiers: bonds, gold and trend-following funds chosen because they have historically behaved differently from stocks. The more conservative your profile, the larger that share. Money you need within a year stays in cash equivalents, and goals two to three years out sit in a short-term reserve.
In taxable accounts, our rules generally hold winning positions at least 13 months before selling them for ranking reasons, and sales draw first on long-term or losing shares. More on tax-aware investing
Each month we compare every portfolio three ways: with its benchmark, with what its rules called for, and with what it actually held after your advisor's decisions.
The gap between Actual and Rules is the measured result of your advisor's judgment. Every departure from the rules is logged with a one-line reason, so it can be reviewed later. That tells us whether the rules are working, and whether our judgment is adding value or getting in the way.
Rules reduce exposure under set conditions. They do not prevent losses. Because they respond to trends rather than predict them, they can lag a sudden drop, and they can reduce exposure shortly before a market recovers. We think the trade-off is worth it, and we want you to know it is there.
No. Investing involves risk, including loss of principal. The rules reduce stock exposure when long-term trends weaken, but they respond after a trend changes and can lag sudden moves.
No. Stock exposure steps down gradually as trends weaken, and the money moves to bonds, gold, trend-following funds or cash. It is added back as trends recover.
Your advisor makes the final call. Any decision that differs from the rules is logged with a reason, and the monthly scorecard shows its result.
No. Each model portfolio has its own rulebook suited to its job. Rebalancing bands apply to all of them.
Risk is personal. Your plan, your timeline and your comfort with market swings decide how much of your money these rules govern. Let us walk you through it.
Book a planning conversationBack to our investment processThis is educational content, not personalized financial or tax advice, and not a recommendation to buy or sell any security or to adopt any investment strategy. Advisory services are offered through Savvy Advisors, Inc., an SEC-registered investment adviser; tax and business services are provided by Breakaway Financial Group. Investing involves risk, including loss of principal. Rules-based strategies may not perform as intended and can lag sudden market moves. Model portfolios are adjusted by the advisor for each client; individual results will differ. Past performance is not indicative of future results. Crypto assets are highly volatile and may not be suitable for all investors.