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