Innovations

An investor has in principle three questions to answer:

  1. Which portfolios of stocks screened out of my stock list are most poised to increase and most poised to decrease in value as my long and short portfolios?
  2. How much money should I allocate to each stock while optimizing my investment objective and given my total investment amount for each portfolio?
  3. How long should I hold on to these portfolios to optimize my investment objective?

DigiFundManager addresses those three questions in an innovative manner. It ranks stock selections using a simple StatArb algorithm. Its stock-allocation algorithm is based on a gradient search of steepest ascend. The optimum holding period spanning the entry and exit points of stock portfolios involves a search for the peak in the power spectrum of the portfolio-value fluctuations. The computations assume Market-On-Close orders.      

Experience teaches us that DigiFundManager is able to screen, rank, weight, and time time series of optimal portfolios from a watch list of preselected stocks producing expected annualized rewards of 5% - 350% and where certain pre-selections hold the promise of a balanced risk/reward ratio of 0.5 - 1.5. 

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