EnterErgodics launch DigiFundManager
Exploiting ergodicity as statistical behavior of the financial markets:
What is good for Wall Street is good for the investor, and vice versa
Enter, The Netherlands, March 16, 2018
Today (March 16), the independent company EnterErgodics starts to offer analytical services for Wall-Street investors. These services are offered at lower cost affordable to retail investors and enable the automated selection, timing, and weighting of optimal stock portfolios. They are offered in a self-directing software program called DigiFundManager. The company is run more like a non-profit than a for-profit entity.
The services are offered at www.EnterErgodics.com. DigiFundManager can be considered as a science- and data-driven Flight Simulator for investors on Wall Street. Its screening, ranking, timing, and weighting model enables an investor to self-configure his game plan. Expectation values of risks and rewards are quantified and validated over economic cycles of booms and busts during as many as 55 years. The program can be set to automatically configure optimal portfolios of any size from any stock list at any specified rebalancing time. Game plans can be designed with expected rewards between 5% and 20%/year with well-balanced risk/reward ratios of 0.5 - 1.5 while keeping rebalancing down to once per quarter over 30-plus years. Game plans with higher expected annualized rewards may be possible to about 40%, but the risk/reward ratios of such high-reward portfolios will generally be higher and unbalanced with rebalancing rates of up to once per week. The risk/reward ratios can be considered as an alternative to the inverse of the Sharpe ratio. DigiFundManager gauges alpha and beta for several benchmarks with different asset allocations.
The approach uses clean historical data, no probability distributions, no scenario rationale, no econometric modelling, just an innovative search algorithm to weight the optimal portfolios within the hectics of Wall Street. EnterErgodics base its innovative approach on the statistical ergodic behavior of The Street and introduce some unconventional and practical screening rules in combination with ergodic ranking and the condition of trading in perfect competition. Perfect competition implies that the daily-dollar volumes of each stock in the portfolios are relatively large compared to the investment value per stock. As a rule of thumb, at least a factor of 100 is taken for this ratio. Limiting this ratio is up to the investor as it is up to him to judge whether the calculated expected investment performance of the optimal portfolios suits his own objectives with sufficient confidence, so that he may take to live trade the optimal portfolios, always in the understanding that expectation values never warrant a deterministic future performance.
Contact: Jan G. Dil (CEO) and Nico C. J. A. van Hijningen (CTO)
Company Name: EnterErgodics
+ Rhaufed Santos, Brazil
Name: Rhaufed Santos
Country: Brazil, Minas Gerais, Belo Horizonte
- I have been now, one way or another, in the market for more than 20 years.
- I have experienced all the emotions one can have in this business: disappointment, frustration, anger, hope… you name it.
- I have read, studied and tested most of all available tools in the market for technical analysis, option trading, forex trading, bitcoins trading … you name it again.
- Four years ago I left Brazil due to my career and I found myself in a situation that the income was much higher than what a I could spend (at least for my standard of living, which I never changed much) and I was faced with the need to really structure my own Fund.
- When I returned to Brazil I had a framework in place, despite not completely satisfied and still making minor tweaks to the strategies - I decided to trade. I decided to abandon everything else to focus on stocks (long and short tradings) and options. Period.
- It was then that I came to meet DigiFundManager in one email from Quora. I had never been Quora follower, but that morning I decided to read something and, fortunately; may be serendipity working, I read about DigiFundManager and decided to give it a try. This was the best decision I ever made. Since then I have constructed a watchlist of my own stocks, which I use with DigiFundManager, and defined my parameters to trade. Every week (yes, I rebalance my portfolio every week) a new list of 16 stocks from my watchlist is suggested for trading.
- I could go in much deeper details about the tool from the point of a trader (my max acceptable drawdown used and why, the process I took to find my watchlist, my returns...). But this is not the point here. The point to be made is that:
- The tool is as simple as it can be, the support from Jan and Nico is second to none, they are really committed to their tool, they know what they are talking about and YES, THE TOOL WORKS. As long as you do your home work, understand the tool and the concepts behind it and know your own risk tolerance and do not get greedy, you can be certain you will succeed. And not, you will not find anything better and easier in the market. If your business is a Fund Manager mindset, then you can go for it.
My trading strategy is like:
- Trading S&P500 stocks, rebalancing weekly.
- Trading long-short in trend-reversion.
- Closing positions on Fridays, not taking the weekend risk.
- Rebalancing my computed positions on Mondays at opening.
- Trading at a leverage of about 2.4.
ROI = 39.41%
Long win = 68.61%
Short Win = 49.62%
Overall Win = 58.98%
Max Drawdown = 13.48% in week 26
MAR = 2.92
EV per trade = 68.08