A service from engineering-returns to provide YOU with a better investment experience. PortfolioTrader is targeted at the active investor who wants to personally take care of it’s capital growth.
.Systematic: All entries and exits are based on quantitative trading systems that provide you with an edge in today’s difficult markets. Systems are tested on 10+ years of history.
Simple: Most of the signals can be traded over the weekend by submitting market-on-open orders for the next day. All trading signals and statistics are posted at engineering-returns.com. If you want to receive the signals in real-time you simply subscribe to my Twitter account (@FrankHassler).
Affordable: The systems are build for ETFs or stocks of major indeces such as the Nasdaq100, thus limiting your trading expenses. Furthermore PortfolioTrader is a service free of charge until further notice.
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.
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The following systems are included
Momentum (MOM): Trading Nasdaq100 stocks in a momentum driven approach. 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. Positions will be hedged in overbought / difficult markets by shorting the QQQs.
Tactical Asset Allocation (TAA): The system will trade the strongest three ETFs out of a basket of major asset class ETFs (long only). A position is held for about twenty days.
Short-term weakness (DIP): The system will trade S&P 500 stocks from the strongest sectors only. A trade (long only) will be entered once a stocked showed short-term weakness. A position is held 7 days in average. The system has a focus on reduced volatility in returns as it buys low volatility stocks only, therefore it complements the MOM system.
Mean-Reversion (MR): Trading the SPY with a mean-reversion style. The system will go long in oversold and short in overbought conditions considering short- as well as intermediate-term conditions. Position is switched about every ~4th day or so. [This system will be included once PortfolioTrader is established.]
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No Investment Advice
The trades published on an ongoing basis mirror what I trade for my personal account. This should not be considered as investment advice.
Continues Improvement
These systems represent a subset of what I’ve developed based on the research documented at this blog. You will automatically benefit from the continued development as well as the addition of new systems to PortfolioTrader.
Model Portfolio
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.
Money Management
In order to avoid cluster risk the correlation among the different portfolio holdings will impact the size of a specific position. Furthermore all trades are adjusted for volatility
Trade Execution
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. Hedge trades can be opened / closed during the week as well. The trades will be announced at this blog as well as on Twitter (@FrankHassler).
Performance
Consolidated performance reports will be released after each month. Performance will be compared against a custom benchmark.
Current and past portfolios can be found here.
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I think this is a very good idea, such service would be very useful for me.
Hello Frank,
It sounds very interesting. I’m looking forward to the possibility to trade your systems. I would appreciate if you could provide an overview with the backtesting results of the three systems upfront and I hope that European stocks are part of your systems.
Kind regards
David
Hello David,
Thanks for your feedback. Haven’t planed to post historical results.
The service is focused around US stocks and ETFs (for now).
Regards,
Frank
I think this would be a great service! It’s the dream of any working person to have a trading service that provides entry signals for the next day. Most of us cannot use the various real time services that are out there. As you write “free of charge until further notice”, I was wondering what kind of pricing you have in mind. I’m definitely willing to pay for a good service but my account is not big enough to pay 100s of dollars every month…
Hi Phil,
it needs to be affordable. Of course that’s a relative term, isn’t it
Haven’t thought about detailed pricing yet. First want to have a good product / service
Frank
Here’s a suggestion: just put a Paypal Donate-button on your page as long as you offer the service for free. I cannot speak for others but for me it would only be fair to donate some of the profits I make from your systems.
Hi Frank,
I very much enjoy reading your blog and programmed some of your systems in Excel VBA as well.
I would be very interested in this service. Hopefully you will add german stocks as well.
Best regards – this is really good work!
Joachim
Hello Joachim,
will focus on US stocks + ETFs for now.
Frank
Nice of you to make this available, Frank. I look forward to giving it a try.
This sounds very interesting.
Hi Frank,
Please count me in for the service. It would be nice to see historical performance of the strategies though – from psycology view point. I have enjoyed reading your posts and thanks for sharing.
Best regards
Asanka
Hi Frank
Count me in too. You work has been stellar so far and i have full faith it would continue to do so in the future.
As david has mentioned before it would be great if you could provide detailed backtesting results.
regards
Sunil
fantastic idea
Hi Frank,
Just discovered you. From what I’ve read so far and the responses from your followers, I’m glad I found you. Looking forward to your final product but from what you’ve laid out, it sounds terrific.
Congratulations Frank, I know this has been in the works for some time. Also, the site redesign looks very sharp. Excellent work all around, as usual. My best, Jeff