TradeStops have recently announced a new level of portfolio management capability that they call “Pure Quant”.
This technology takes their already highly successful “Stock State Indicator” (SSI) and makes it easy to apply to a wider range of investment ideas than ever before to create a risk adjusted portfolio.
It also goes one additional step further. It provides a real time optimized portfolio, from your own chosen universe of stocks or portfolios, for the best medium term performance, based on their approach.
The Pure Quant algorithm removes all positions that are not in a healthy state according to TradeStops proprietary SSI indicators. It also calculates the average volatility quotient (VQ) for the specified positions over the past 30 years and removes all positions with an average VQ of more than 40%. The last step in this algoritm removes all positions that have a negative gain since recommendation or publicly declared purchase.
This new technology tool sets off a whole new level of inquiry for portfolio construction. TradeStops are automatically linked with a vast range of newsletters and publically declared position data, including many of the best hedge funds of recent decades.
For example, if you wanted to know the best positions to buy from 5 of your favorite hedge fund managers …. say David Einhorn, David Tepper, Seth Klarman, Monish Pabrai, and Prem Watsa then here it is for a $100,000 portfolio.
My greatest confidence is in the best research I have received over the last decade or so. Most of this comes from my lifetime subscriptions to newsletters from Agora Inc.
There is clearly a great deal of further research to be done on Pure Alpha. However, it is also clear to me that this is a unique opportunity for me to leverage all the best life time subscriptions I have into a single product. I have already been applying the SSI approach in other portfolios with very beneficial results.
Today I am launching “Quant Agora”, and will be gradually incorporating it into portfolio allocations.
For further information on Tradestops, here is a link to their webinars.
No method, software, or advisory services guarantee any return or could ever be regarded as risk free or in any way perfect as a risk management system. No returns should ever be guaranteed, and all methodologies carry risks as well as benefits.
The information and charts are provided to illustrate how they can help construction of portfolios, and be a useful guide for decision making and for testing methodologies and illustrating how portfolio construction could change the dynamic of risk management. Analysis provided by any investment services, whether Tradestops or Stansberry Research has it’s limitations and may result in the loss of capital.
The purpose of providing the information contained in this note is as an illustration only to help investors understand some aspects of the investment process. The statistics mentioned are accurate to my best knowledge but only a snapshot at the time of writing and should also be regarded as illustrative only.