Portfolio Strategies & Asset Allocation – 86.43% Expected Annual Return Using Algorithmic Allocation

November 22, 2020
 Summary
  • How to use an existing algorithmic signals system to allocate equity systematically.logo1
  • Building a sample portfolio based on stocks, interest rates and currencies.
  • Actual portfolio back test and returns.
Introduction:  Allocating your portfolio in a way that maximizes returns and minimizes risk can be tricky. In order to reduce volatility, high yield strategies are often ignored. In theory, if you were able to pick one stock a day you were most certain will go up - in order to maximize expected returns you would only invest in that stock. The downside of course is also maximizing your risk exposure.In this article I will go through a method of allocating funds using the I Know First artificial intelligence system. This will link between algorithmic signals, and actual market buy/sell decisions. Before you continue reading you should decide if any of these points don’t suit you well. The main advantage of this portfolio allocation is that it is a day trading model which is 100% systematic. Both the investment buy/sell decisions and allocation are based off the signal data; allowing any investor the peace of mind in separating emotion from trade decisions.

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