This Introduction to using Rules Based Investing atop a Quantitative Model will be expanded upon in the Rules Based Investing section of this TWP website (in the coming weeks).
As you read below, Quant Models are great during Bull markets, and unknown during Bear markets. That’s why you can add Rules to the Model, just as if it were a Fund, ETF, or an individual security. Thus you end up over-achieving during the Bull markets and missing as much as you can of the the major Bear markets.
**Please bear in mind that there are both:
- many funds/models, and
- many Rules
to choose from. The video illustrates just one Fund + Rules, to provide a ‘taste’, of the Combination of Fund + Rules. Please talk to your Trusted Wealth Professional as their are many Funds and many ways to apply Rules (we’re using a visual set of Rules/Crosses in this example).
**Also, performance metrics should be available from the recent Peaks (March 2000 and/or October 2007) such that your performance metrics capture full Market Cycles (Bulls and Bears).
Quant Strategies – Are They For You?
Link: Quant Strategies – Are They For You?
Extract: Quantitative investment strategies have evolved into very complex tools with the advent of modern computers, but the strategies’ roots go back over 70 years. They are typically run by highly educated teams and use proprietary models to increase their ability to beat the market. There are even off-the-shelf programs that are plug-and-play for those seeking simplicity. Quant models always work well when back tested, but their actual applications and success rate are debatable. While they seem to work well in bull markets, when markets go haywire, quant strategies are subjected to the same risks as any other strategy.
