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Interactive webinar Quanttrader: Building high-performing Strategies

On Saturday February 11, 2017 the QuantTrader Community of Logical Invest hosted their first interactive Webinar to explore the functionalities of the software and exchange on tips for building and backtesting high-performing ETF rotation momentum strategies for retirement and savings accounts. Background of QUANTtrader QUANTtrader is a swiss-made software tool used to develop, backtest and implement rules-based ETF Rotation investment strategies. Since it is built by a trader and long-time investor rather than by a developer, QuantTrader’s main strength is in building medium to long term investment portfolios that are diverse, adaptive and can control risk. All this without writing a single line of code. The software comes per-populated with all strategies currently run by Logical Invest. These are strategies that have been successfully running “live” for 1-3 years as of  February 2017, so you can actually track past performance. You can customize, tweak existing or build your own strategies. Live Recording of the Session - 2 hours in-depth review on ETF Rotation Momentum Strategies Agenda: How to get started? File Management & Main functionalities Benefit of QuantTrader Dynamic Allocation vs. Online Portfolio Builder Markowitz Modern Portfolio Theory Ranking Algorithms and Strategy Parameters Optimization routine and how to avoid over optimization Extending backtests with synthetic tickers Consideration for combining strategies into MetaStrategies Showing off – Some of the best strategies and portfolios so far Free 30 days trial – Try it out now! Interested in giving it a try? Build your own high performing Portfolio for savings or retirement account, most IRA and 401k plans are supported. No credit card or PayPal needed, register now. To learn more about building your ETF Rotation Momentum strategy with QuantTrader see here. A good fit for Advisors and money managers using ETF Rotation Momentum Strategies In many ways, QT is a good fit for [...]

2017-04-20T01:27:47+00:00 By |0 Comments

One Approach to Rational Retirement Plan Investment Allocations

We analyse one of the Fidelity Freedom Target Date Funds (FFFDX) versus a portfolio of ETF rotation strategies - The findings will surprise you! This is a guest post by Richard Manley, first published on Richard´s Corner, the Logical Invest User Community: Defined contribution retirement plan using target date funds There’s no shortage of challenges facing working people in these days. In addition to job outsourcing and the offshoring whole operations, inflation/deflation and zero interest rates on savings, most workers who have a retirement plan have one that’s called a “defined contribution plan”, in the US in many cases it’s also called a 401K. In such a plan, a participant contributes before-tax funds, often matched to some degree by the employer, into an account that is intended to accrue and grow until retirement age when it can be distributed over one’s retirement lifetime. This kind of plan of course puts the responsibility and burden of making wise investment choices on the individual. Most working folks are not trained in finance or security selection or portfolio construction and are thus left to rely on their own uninformed devices or advice from financial gurus in the media or in newsletters or cable TV talking heads, or merely to reactionary emotions that attend to most of us during extreme financial events. The U.S Dept. of Labor’s new “Fiduciary Rule” will take effect in April, but what practical effect this may have on individual’s specific investment actions under defined contribution plans remains to be seen. As a retirement plan investor, I’ve experienced all these pitfalls and more while I’ve tried to save enough to comfortably retire someday. A coherent approach to managing my modest retirement assets was clearly lacking and as a result I found myself thrashing my account to respond to the [...]

2017-03-18T23:47:49+00:00 By |4 Comments

Logical-Invest monthly update January 2017 – Topic 401k Investments

Special topic this month: 401k Investments Logical Invest Investment Outlook January 2017 Our top 2016 strategies: The Maximum Yield strategy with 29.92% return. The Leveraged Universal strategy with 22.33% return.   The NASDAQ 100 strategy with 21.54% return. SPY, the S&P500 ETF, returned 12.00%. Market comment: To put 2016 in perspective, we must go back to 2015 and remind ourselves how the rising dollar environment affected diversified investors. Most asset classes suffered through 2015. The S&P 500 stayed flat, long term Treasuries lost 2%, gold lost 9%, emerging markets shed 17% and USO, the crude oil ETF was down 44%. To make things worse, in August 2015 there was a sharp correction in equities which caused many "weak hands" to just exit the market. The first half of 2016, by contrast, rewarded anyone holding any of these assets.The second half proved far more challenging as rising yields expectations depressed bond prices, with TLT loosing 16% from July to December. Expecting higher yields in the U.S. can cause an appreciation in the U.S. dollar which in turn causes weakness in dollar denominated assets like gold and foreign equity. All of these assets gave back some of the early 2016 gains. Two major events, the Brexit vote and U.S. elections proved to be much less disruptive than expected. For 2016, The S&P 500 returned 12%, long term Treasuries gave up early gains to stay flat and gold gained 6%. Emerging markets gained a respectable 14%. All our strategies were positive for the year. Our 'non-equity' strategies did well outperforming their respective benchmarks:  Our volatility harvesting strategy (MYRS) returned 29.92%. Our Bond rotation strategy (BRS) returned 13.62%, compared to 1% for TLT and 2.4% for AGG. Our Gold hedged strategy (Gold-USD) returned 15.74% compared to 6% for Gold. For 2017, in preparation for rising yields, we have adapted our strategies to rely less on the 30-year Treasury ETF (TLT). We introduced inflation [...]

2017-03-13T19:00:47+00:00 By |1 Comment

Portfolio Builder Update January 2017

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 strategies under certain rules: Either to Maximize the Sharpe Ratio (Risk/Return), target a volatility level one feels comfortable with, or to limit historical drawdown in the expectation this will also hold true for the future. Using Markowitz Modern Portfolio Theory While full-blood Markowitz aficionados will now probably feel the urgent need to stone us to death, yes, same to some other peers in the industry our approach is dynamic and we do not feel the past is set in .. hmm.. stone! As such, we need to update our Portfolio Builder Optimization periodically based on the most recent returns, volatilities and co-variances of and between our strategies. As the overall optimization is based on data from the past 8 years and we´re only adding the last quarter of data the changes are relatively small as you can see in the following. 2016 results of our 10 Portfolios for everybody But before going into the allocations for 2017, how was the performance of the 10 “pre-configured” Portfolio´s during 2016? Results using our Online Portfolio Builder are as follows: But overall with all Portfolios in the double-digit area, six of ten Portfolios topping 20% in returns and all but the minimum Volatility Portfolio exceeding the 12% return of the S&P 500, the conclusion of a partly bumpy year with many surprises is excellent. It pays out [...]

2017-04-20T01:50:55+00:00 By |6 Comments

Introducing Richard’s Corner – The Logical Invest User Community

A vivid and open exchange between the user community and the team behind Logical Invest has always been a main focus and motivation for us. Beside coming up with new innovative investment strategies, we feel we can add value by creating a space for exchanging on investment practices, money and wealth management and the tools needed for getting it up & running in real life.We´re therefore delighted to announce a new feature to further drive this exchange: Richard´s Corner, the Logical Invest User Community, moderated by Richard Manley, a long time user and critical commenter of our services.Richard is retired from a career as an engineer, analyst, planner and manger that spanned more than 40 years where he evaluated engineering and finance alternatives for large scale capital intensive projects. He is a volunteer for the AARP tax assistance program for the elderly, an advocate of life-long learning, and is interested in making the best of his 401K assets.Purpose of Richard’s CornerRichard's Corner provides a focused venue for Logical invest subscribers to share their experiences using the Logical Invest service, especially the Logical Invest tool sets – Portfolio Builder, Consolidated Strategies and QuantTrader. I think as subscribers engage in an informative exchange about how we use the tools we can all become more adept at taking advantage of their power.Possible topics to explore include:Logical Invest strategy combinations and investor goals,particular techniques used with the tools (e.g., custom solver solutions),investing and trading strategies,outcomes that Logical Invest subscribers experience relying on the tool set,circumstances within which the tools are applied (e.g., advisory service, family assets, retirement accumulation or long term distribution management, etc., …),maintaining discipline with the tools,and ideas for new features and capabilities that might make our investing lives both easier and more successful.We hope the exchange that takes place in this [...]

2017-02-20T12:46:09+00:00 By |0 Comments

Portfolio optimization: The all new Portfolio Builder

  From individual Strategies to Portfolio Optimization Based on the interest of our followers and our own investment philosophy, we have gradually evolved from offering single quantitative strategies towards blends or portfolios of strategies. The way we visualize our own development cycle might be best summarized in a chart: Where are we on this path and where are we heading? We believe we have now a stable set of 'core-strategies', which cover a broad spectrum of both risk/performance but also trading and hedging instruments. We will continue our research on new strategies, and will also in future come up with smart ideas in that area. However, we are currently increasing our effort in blending these strategies into portfolio solutions. The "Portfolio Builder" with fixed-weight allocations is here only the first step. Developing a dynamic Strategies of Strategies (or Meta-Strategies) which smartly allocate with changing weights among a set of our strategies is one of the projects we initiated since the four of us met in mid 2014. Our thought: Quickly reacting to or even anticipating changes in the market environment by changing horses on the fly, better dealing with changing correlations of markets and constantly challenging whether one of our strategies has lost ‘steam power’ should be even better than simply allocating funds with fixed weights or even worse discretionary among strategies. To continue the enhancement of our tools towards this vision, we’ve given our fixed-weight Portfolio Builder a major overhaul and implemented many of the requested features. Key features for portfolio optimization Some of the new key features for portfolio optimization are: Equity lines according to most recent strategy review Our subscribers know that we review our strategies periodically, either because we find improvements for the execution (change of IEV to FEZ in the Global Market Rotation), or introduce newly developed [...]

2017-03-17T10:40:09+00:00 By |9 Comments