![]() ![]() +/- 20%) our portfolios will see a smaller move (in absolute terms) that’s valid for both directions (up or down), as applicable. Point is, when you choose to ‘beat a benchmark’ on a risk-adjusted basis, you can do all sorts of adjustments, but fact is: If you take a lower risk, it’s likely that on a particularly strong move of the benchmark (e.g. In both cases you end up with no return, but the “constantly flat” portfolio is going to get there while taking a lower risk (volatility). We all agree that two flat years are better than +25% (year 1) followed by a -20%. ![]() Why so? Because in exchange for doubling the risk - the return is only 1/3 higher. For us, a 15% return with a risk level of X is better than a 20% return with a risk level of 2X. However, a "better return" for us is a relative term that must be measured against the level of risk which is taken. This is key for understanding this service! Sure, we would love to outperform the SPY from an absolute perspective too, delivering not only a better, but also a positive, return. ![]() Putting it differently, we wish to deliver more return for each unit of risk that we take than the broader market delivers. It’s important to keep that both portfolios are competing with the S&P 500 ( SPY) on a risk-adjusted basis. Level of Maintenance (required from subscribers)Īny Type of Fund with AuM > $250M & Daily Turnover > $5M Income seekers and DGI investors looking to ‘copy & paste’ (an entire portfolio) and/or enhance their own portfolio with new ideas Investors who wish to be ‘in the market’ with less drama, more creativity, and without the need to deal with the ‘fine tuning’ of risk and allocations Here are the characteristics of each portfolio and the main differences between the two portfolios: Nonetheless, while the essence of both portfolios is similar, the portfolio construction isn’t. The ratio measures the excess return per unit of deviation in an investment asset or a trading strategy, typically referred to as risk.īoth portfolios are well-diversified, covering all 11 sectors.īoth portfolios share the same ultimate goal: outperform the SPY on a risk-adjusted basis. *The Sharpe ratio is a way to examine the performance of an investment by adjusting for its risk. Two Portfolios, One GoalįMP & RIG are all about portfolio and risk management, with an emphasis on outperforming the SPDR® S&P 500 ETF Trust ( SPY) on a risk-adjusted basis!, i.e. Macro Trading Factory is saving you time, money, and distress on one hand, while freeing you to do what you love, want, or have to, on the other hand. No matter if you "want to but can't", or "can but don't want to" type of person No matter if you are very knowledgeable, or have no clue, about the market, about investments, or about running a portfolio No matter if you are an extremely busy person with a full-time job, or a retiree who simply prefer to spend most days on the golf course Macro Trading Factory is the ultimate solution for you, if you have no time, knowledge, and/or desire to deal with the demanding, and time-consuming, task of managing your own money/portfolio.īy offering set portfolios that aren’t based on frequent trading, we are allowing you to keep your daily routine undisturbed, while we're watching your back.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |