That's basically what I do with my retirement account. While I didn't buy the exact funds suggested in the Merriman paper, I bought ETFs that were very close in description. Several were from Wisdomtree.
I'm using AIM as my "rebalance" methodology. Each component of the UBHS portfolio is run as a separate AIM engine. Each then can buy or sell as the Markets determine within each AIM. Our Cash Reserve is an extra component that UBHS doesn't contain. Total cash ebbs and flows with the market.
I know Karw also is doing something quite similar. We refer to our portfolios as "Ultimate Buy and AIM!" Last time I checked it was doing quite well against UBHS but that's been a while.