Investment Strategies

The SPY-TLT Universal Investment Strategy (UIS)

Universal Investment Strategy ETF Rotation Investment Strategy Volatility

Introduction to the SPY-TLT Universal Investment Strategy (UIS) This paper discusses the simple but effective method of using adaptive allocations between stock market ETFs and Treasuries to assemble a simple yet smart Investment Strategy. This method has been developed to replace the 100% switching used in normal rotation strategies like the Maximum Yield Rotation and the Global Market Rotation strategies. The real world is just not a 100% “risk on” or “risk off” world. Most of … Read more

The Gold Currency Investment Strategy

goldchart
  • The Gold-Currency strategy trades Gold vs 3 major currencies.
  • It is based on the negative correlation between Gold and the U.S. dollar Index.
  • It is an excellent addition to existing equity or bond portfolios as it holds very little correlation to either.
  • It can be traded using ETFs, Futures or even low-margin/low-cost FX pairs.

Permanent Portfolio – Will We Ever Kill The Bug?

permanent portfolio all weather fail save investment harry browne brownes bond term

An analysis of Harry Browne´s Permanent Portfolio and further enhancements towards:  A Permanent Portfolio ETF Rotation Strategy employing Momentum, Mean Reversion, and Volatility Targeting. It’s not just cars. It’s investment strategies like the permanent portfolio, too. Vintage “all-weather” investment strategies are often simple, easy to execute and give amble ‘out-of-sample’ data. In other words one can see how they performed in life years after they have been proposed. And like the VW bug, they are … Read more

Easy Investing in a multi-strategy Markowitz optimized Portfolio

Design and Execute your Custom Markowitz optimized ETF Portfolio

In our recent post we´ve shared some powerful options to design a well-balanced portfolio of several Logical Invest strategies to achieve a preset portfolio objective using Modern portfolio theory (MPT) techniques developed by Nobel Prize laureate Harry Markowitz. Here, we review the steps to achieving an optimized portfolio with our tools and summarize some portfolio options to illustrate use of our updated tool set: (picture for mobile use) These options might serve as a starting point to design your … Read more

Fail-Safe Investing – The “straight” BUG with no leverage

vintage beetle ad straight

In a previous post we introduced our new investment strategy, the BUG. There has been a lot of interest but also some concerns when it comes to using leverage. We are introducing a version of the BUG for non-leveraged accounts.

In this version we allocate amongst 6 ETFs: SPY, TLT, GLS, CWB, TIP and PCY. Again as in the original strategy we use these heuristics: Timing (using a simple average rule), Volatility Targeting (we reduce exposure to more volatile ETFs), Momentum (we reduce the size of the worst performer and add to the rest). We don’t employ short term mean reversion and we only trade up to 4 assets.

QuantTrader – The Swiss army tool now also for individual investors

QuantTrader

Dear Subscribers, We are happy to announce that the full QuantTrader version is now available to individual investors for $150 a month or $1500 per year. We will cross-subsidize a bit with the high interest we´ve received from institutional investors like RIA and hedge-fund managers so far. Fair play requires that subscribers who manage their own or other people’s assets above $1m subscribe to the institutional offering. QuantTrader is a fine piece of art mixed with a … Read more

Inverse volatility trading – A smart investment strategy for income

Why trade inverse volatility? Since 2011, trading inverse volatility has been the one of the most rewarding investment strategy in the markets with annual returns well above 30%, depending on the instruments used. Can I trade this? If you can trade ETFs in your account, you can trade an inverse volatility strategy. VIX is the CBOE Volatility Index, a popular measure of the implied volatility of S&P 500 index options; Often referred to as the fear index or the … Read more