A NEW service from engineering-returns to provide YOU with a better investment experience. PortfolioTrader is targeted at the active investor who wants to take care of it’s capital growth.
What you need to know about Portfolio Trader?
Portfolio Trader (PT) is actively trading the US equity market and seeking returns from capitalizing on upward and downward price trends. Furthermore it seeks returns from short-term market inefficiencies. It’s designed to archive positive returns through all market cycles, though it can under perform the market in certain extreme conditions.
Systematic: Trade decisions are based on quantitative methods. These methods are back-tested on 10+ years of historical market data. In order to provide a diversified stream of returns multiple trading methods and systems are applied, e.g. trend following or mean reversion. The set of diversified trading systems is being improved constantly and new systems might be added going forward.
Simple: Trades can be placed over the weekend by submitting market-on-open orders for the next day. All trading signals and statistics are posted at a dedicated web-page. You can stay up-to-date by subscribing to my TWITTER account or RSS Feed.
Innovative: Once subscribed to Portfolio Trader innovation won’t end. We continue innovate in the area of systematic trading. The trading systems that make up Portfolio Trader will updated accordingly.
Diversified: How is PortfolioTrader different from other services out there? The trading systems being part of PortfolioTrader are using a diversified set of trading styles for a number of different asset classes. The idea behind that: not everything will work all the time. Combining various trading systems will reduce volatility in your returns and provide you with a better investment experience.
What makes up Portfolio Trader?
A number of different trading systems combined with a cross system money management:
Stocks (long): Trading Nasdaq100 stocks in a momentum and mean-reversion driven approach. The system is adapting to given market conditions and thereby deciding how to trade the market: e.g. mean-reversion, momentum or mix of both. Stocks are ranked on multiple dimensions. The strongest five stocks will be held for a week, then re-ranking occurs. In case of a strongly negative stock market environment all positions will be closed and the system remains in cash. A position is held for about ten days in average. The system is most of the time invested.
Stocks (short): Trading S&P 100 stocks showing downward momentum. The system trades in strongly overbought markets and therefore also acts as a hedge for the other systems. Furthermore it’s invested when the overall market is weak. A position is held for about five to ten days.
ETF: The system will trade the strongest ETFs out of a basket of major asset class ETFs (long only). A position is held for about twenty days.
Money management: In order to avoid cluster risk the correlation among the different portfolio holdings will impact the size of a specific position. Our advanced money management approach will take care of that.
What else is important?
No Investment Advice
Frank Hassler has developed Portfolio Trader to manage his own portfolio; hence he is also mirroring the trades in his personal account. This should not be considered as investment advice.
The model portfolio will start with 100.000 USD. The portfolio won’t be leveraged for it’s regular positions. However, the only exception is the hedge. In case you have a broker that doesn’t allow you using portfolio leverage consider putting some capital aside.
Prior to the market open of a new week I will publish the trades. That’s most likely Sunday’s. All regular trades are being executed at the OPEN using MarketOnOpen orders. The trades will be announced at this blog as well as on Twitter (@FrankHassler).
Consolidated performance reports will be released after each month.
The investor of Portfolio Trader has to have a high risk tolerance as the portfolio can undergo times of high volatility resulting in large draw-downs. The portfolio can be, but doesn’t have to be protected (hedged) all the time; hence it’s prone to sudden moves in either direction.
From September 2011 to March 2012 we had about 70 trades. For this reason tThe investor needs to consider a low-cost broker before actively following the suggested portfolio.
The focus is on trading index stocks and ETFs with high volume. The traded ETFs represent different asset classes such as commodities, international/regional/country stock indices, bonds, real estates etc. Portfolio Trader is trading long as well as short.
.The investor of Portfolio Trader has to have a high risk tolerance as the portfolio can undergo times of high volatility resulting in large draw-downs. The portfolio can be, but won’t be protected (hedged) all the time; hence it’s prone to sudden moves in either direction.