Strategy
Portfolio Coach® uses the trademarked RAAMPS® or Risk Averse Actively Managed Portfolio Strategy to create and manage individual portfolios. This automated self-learning algorithmic strategy aims at capturing above-market upside returns while limiting the downside capture ratio.
The program runs weekly and trades in the online portfolios are executed on the first trading day of the week. You will be notified over the weekend of our recommended trades. You then decide whether or not to follow our recommendations in your own account. If you were to follow each of our recommended trades your returns should closely mirror those of the online portfolio.
Screening
We start by screening, focusing on a specific sector, industry, fundamental, or tendency. However, we have found that screening alone offers no protection and only cyclical alpha. It does however create a symbolic balance by allowing portfolios to focus on different elements.
Ranking
Next, we use their own proprietary ranking algorithms to tell which of the screened stocks are the strongest. This step seems to provide significant alpha as their buy and hold base portfolios have done exceptionally well historically.
Actively Managed
Each of the portfolios is actively managed – by you. Portfolio Coach uses its momentum trading algorithms. These algorithms initiate buy and sell signals. This takes the human emotion, (which studies have shown is where individual investors make their biggest mistake) out of the portfolio management equation and makes the process repeatable.
Refresh
Lastly, the portfolios are refreshed using the steps outlined above. We take out stocks that are not active and/or underperforming replacing them with the strongest stocks as indicated by our screening and ranking process.
These portfolios have consistently outperformed the overall market by a wide margin since their inception in January 2007 by using this trademarked risk-averse actively managed portfolio strategy described above. This strategy is a highly technical sophisticated quantitative algorithmic trading program that looks to be risk-averse by actively managing portfolios. It evaluates momentum and looks to sell out of a particular stock as it corrects and rebuy into that stock as it begins to rise.
RAAMPS® is used by institutional clients, endowments, foundations, and Ultra High Net Worth individuals, Registered Investment Advisors, Certified Financial Planners, MBAs as well as Financial Advisers each who uses this strategy to manage their client’s portfolios and assets.
We have outlined their trademarked four-step strategy below or to read a more detailed summary go to: www.raamps.com.
We have used this strategy to build over 100 custom portfolios for the Portfolio Coach subscribers.
