Choose One of Our Core Portfolios
We recommend you start with one of our 3 simple, “no-fuss” Core Portfolios. Each portfolio consists of a set of
strategies that have been optimized by Logical Invest to provide the target risk/return profile.
While the strategy allocations of each portfolio are relatively stable, the individual holdings of underlying strategies tend to change each month.
You will get a consolidated view of all the holdings of all the strategies in your portfolio.
New users automatically are assigned a default Core Portfolio to get started.
If you want to change your portfolio or do not have a portfolio yet under “My Portfolio, then:
On the side menu, click on Core Portfolios, then pick the appropriate strategy and hit Select it "Set as My Portfolio".
Now you can click on “My Portfolio” and sroll down to see current allocations. You can view which strategies are
being used and how much the portfolio is allocating to each strategy by clicking the ‘By Strategy’ button. To see the
individual ETFs and stocks held by your portfolio, enter an investment amount and choose ‘By Stock/ETF’.
You can then see in detail all the amount of stocks/ETFs held by the virtual portfolio. You can now go to your online broker and mirror
the allocations to your account. The allocations will be updated on the first day of each month.
Customize Your Portfolio
If you want to make change to your Core Portfolio, we suggest you first click on Strategies to learn more
about the underlying strategies in your portfolio as well as other strategies available to subscribers. When you are ready to make changes, go to the
My Portfolio page and click on the pencil icon in the upper right corner.
A popup will appear. In our example Maximum Yield strategy is part of the portfolio. We will remove it and add the Bond Rotation strategy instead.
Click on ‘Add Assets’. A new popup will appear.
Deselect the Maximum Yield strategy and select the Bond rotation Strategy.
Now you have reallocate to BRS. You can also change any other allocation you wish. Hitting ‘Preview’ will give you a new line with the statistics of the new portfolio. If you are happy hit ‘Save’. You now have a customized portfolio.
Build Your Own Custom Portfolio from Scratch
If you feel you need complete control, you can use the portfolio Builder.
This tool allows you pick which strategies (or ETFs) go into your portfolio. Start by selecting Portfolio Builder on the side menu.
Pick the Nasdaq 100 Strategy, the Bond Rotation strategy and the Gold Currency strategy.
Click the blue “Continue” button on the top right.
You can then “turn the dials”, i.e., adjust the allocations of the component strategies, remove a component strategy or add a component strategy.
If you are not sure how to weight the components that you picked, you can let the optimizer find appropriate weights that have worked in the past.
The optimizer takes two inputs: How much historical data to consider (ie, 5 years) and an objective (ie, minimize volatility).
Keep in mind that optimizing a portfolio takes into consideration not only each strategy’s return and risk but also it’s correlation to the other strategies, or in other words, how well strategies "play with each other".
If your edited portfolio holds promise for meeting your objectives, you can save it under ‘My Portfolio’.
Step 4: Create a custom Portfolio using the Optimizer
The portfolio optimizer is a very useful tool for finding weights for each strategy you want to include in your portfolio.
Start by selecting “Portfolio Optimizer” in the menu.
Pick up to 7 strategies to include in your portfolio.
Set the minimum and maximum weights for each. For example, since the leveraged UIS strategy is risky, you may want to limit maximum allocation to 15%.
Pick a metric to optimize for. Picking volatility will create portfolios with the lowest possible volatility, a good choice for larger accounts that need to control risk.
Pick the maximum amount of strategies the portfolio can hold.
Once you optimize, you will get multiple solutions. The best way to visualize them is to use the graphs in the bottom.
Let’s take the left graph. Each orange circle represents a solution. Placing your cursor on top shows you the allocations. The higher up you go, the higher the return of the portfolio. The further to the right you go, the higher volatility of the portfolio. You can now choose the one that comes closest to your preferences.
If you click on the magnifying glass icon, you will get a full preview of the selected portfolio.
Again, if you are happy with your portfolio, you can save it under ‘My Portfolio’.