Investment Strategies

How to create a hedge strategy in times of market troubles

Hedging US Markets Drawdown Gold TLT

In this article I would like to explain how to create a hedge strategy for an equity position, so that draw-downs, like the current one (December 2018), are minimized. During this 10-year bull market, many investors have forgotten that investing only in equities can be quite risky. It has been simple to buy the SPY S&P 500 ETF and profit from rising valuations. This year-end 20% correction makes many investors reconsider safe haven assets like … Read more

Logical-Invest Investment Strategy changes for 2019

investingmoneykStrategiesInvestments

We have made some quite important changes to the Logical Invest strategies for 2019. Please note that the January strategy allocations will be calculated based on these updated strategies. 401 / IRA compliant base strategies The new strategies will not use leveraged or inverse ETFs, making them and the portfolios derived from them, more 401 / IRA friendly. The changes have been backtested and do not reduce the performance of the strategies due to a … Read more

Portfolio Builder Update January 2017

My Portfolio Builder Analyzer harry markowitz modern portfolio theory mpt

Happy new year –and let´s start it set-up for success with some Markowitz Modern Portfolio Theory! As previously announced, we´re updating our Portfolio Builder Optimization periodically, both in the Online and Offline Version. Updated Portfolio Builder Optimization for 2017 employing Markowitz Modern Portfolio Theory Why that? Recall the Portfolio Builder is using a Markowitz Modern Portfolio Theory approach, that is, we´re using past returns, volatilities and co-variances to determine an optimum fixed-weight allocation among our different … Read more

Backtested Data vs Historical Data

Understanding why we use backtested data in our webApp Our new ‘home’ is a place to evaluate current strategies and design new portfolios going forward. The data we use is backtested data based on the latest strategy parameters. The reason we do that is to be able to see how each strategy would have performed at current parameters so that we can then combine them into a portfolio. In essence, our new tools are forward looking tools … Read more

Logical Invest strategy update for an inflation environment

Inflation ETF Rotation Hedge

The following strategy update will be in effective for the February rebalancing. QuantTrader user will get a notice of the updated QuantTrader.ini strategy file when they start QuantTrader. You can also download the file also manually from here: https://logical-invest.com/quanttrader/QuantTrader.ini It is my opinion that going forward, inflation poses a serious risk for investors. From 1980 to 2015 Inflation went down from more than 10% to near 0%. Since 2015 inflation is steadily rising from nearly … Read more

Portfolio Builder Allocations 2018 – Set yourself up for success

First of January 2018 after a fabulous year in the markets and hopefully also your account. What better time than to spend some hours on revisiting our portfolio allocation to be ready for whatever the new year will bring? As stated previously we update and re-optimize our fixed-weight portfolios in the Portfolio Builder about twice a year. To recap, why do we re-optimize portfolios periodically? Modern Portfolio Theory by Harry Markowitz uses past returns and … Read more

Why Work Yourself, If Silver Can Work For You? (My Silver Strategy)

In the past 20 years I traded nearly everything you can trade, including commodities. Since about 10 years, I have gone from purely emotional trading to systematical rule-based trading. Today, I don’t trade anything anymore, if I cannot reproduce a positive backtest of my trading strategies. Today I stopped trading commodities, because it is very difficult to get good results with backtested strategies. My core investment strategy is the “Global Market Rotation Strategy“, which I … Read more

The Morpheus ETF Strategy: Combining the Blue Pill and the Red

Morpheus Investment Portfolio VIX Nasdaq

A guest post by Tom Gnade. Are you also interested in sharing your thoughts? Contact us! Several years ago, the Logical Invest whitepapers first introduced me to rotation investment strategies. After some research, I subscribed to the MYRS (the “Maximum Yield Rotation Strategy“), with good results. It was the first paid investment subscription I had ever used. I moved on to another service to learn options trading, and did well for two years, until a … Read more

The Logical Invest long-short US Sector Rotation Strategy

stock sector rotation strategy

– A US sector rotation meta strategy combining dynamically 5 different sector strategies based on SPDR ETF The following paper will explain how to build a U.S. sector rotation strategy which allocates dynamically between 4 different long US sector rotation strategies and one short US sector rotation strategy. This strategy is therefore different from our Global Sector Rotation strategy, as it only employs US sectors. Due to low correlation of these sector rotations, the combination … Read more

Top Performing ETFs Strategies – Portfolio Idea

top etf investment strategy portfolio builder

In the follow up to our webinar about how to compose top performing ETFs strategies among the QuantTrader community last weekend, we received many interesting questions and ideas to follow up. One question in particular I´d like to share in a post, as it involves all our “All Strategies” subscribers. John L. asks: “Using a simple meta strategy by choosing the top two strategies from the previous month (from the monthly newsletter), and investing in … Read more