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Pricing plans
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Yes.
You will be subscribed to Basic plan automatically when your 14-day free trial will expire.
With Basic plan you can use Summary dashboard for free.
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No, there is only an annual plan.
Yes. You can always turn autorenewal off in your account, if necessary.
Strategies
The strategies are built on three main principles:
- Simplicity. Involve only three asset classes, represented by three widely recognized ETFs. The rebalancing algorithm is simple, with monthly updates and an average of only a few trades per year.
- Diversification. Use only uncorrelated assets that have a positive long-term expected return and distinct economic characteristics.
- Risk Control. Asset allocation is dynamically adjusted in response to shifts in stock and credit market regimes.
The strategies are designed for three regions: the US, Europe, and Global. Each region has three strategies:
- Asset Allocation Strategy. An actively managed strategy that dynamically adjusts the asset allocation of the model portfolio in response to shifts in stock and credit market regimes.
- Enhanced Asset Allocation Strategy. An enhanced version of the Asset Allocation Strategy, with leveraged exposure to the equity component of the portfolio.
- Risk Parity Strategy. A passively managed strategy that employs a fixed target asset allocation that aims to achieve approximate risk (volatility) parity between the portfolio’s aggressive and defensive components.
Actively managed strategies dynamically adjust the asset allocation of the model portfolio in response to shifts in stock and credit market regimes. The algorithm distinguishes between two primary market regimes:
- Risk-On regime: Favorable for risk assets
- Risk-Off regime: Unfavorable for risk assets
The appropriate market regime is determined by a combination of two key indicators:
- Stock market trend indicator
- Credit market trend indicator
A positive stock market trend is identified when the respective stock market index is above its 10-month moving average. A positive credit market trend is defined when respective credit market’s high yield index effective yield is below its 10-month moving average.
The Risk-On regime takes effect when both the stock market trend and the credit market trend are positive. Any other combination of these indicators signals the Risk-Off regime.
During the Risk-On regime, the portfolio increases its exposure to risk by adopting a more aggressive target asset allocation. During the Risk-Off regime, the portfolio takes a more defensive stance and reduces its exposure to risk.
Passively managed risk parity strategies need to be rebalanced only once per year, at the beginning of each year.
No, actively managed strategies are rebalanced only when the strategy’s algorithm adjusts the asset allocation of the model portfolio in response to shifts in stock and credit market regimes.
The strategy’s algorithm distinguishes between two primary market regimes:
- Risk-On regime: Favorable for risk assets
- Risk-Off regime: Unfavorable for risk assets
The appropriate market regime is determined by a combination of two key indicators:
- Stock market trend indicator
- Credit market trend indicator
A positive stock market trend is identified when the respective stock market index is above its 10-month moving average. A positive credit market trend is defined when respective credit market’s high yield index effective yield is below its 10-month moving average.
The Risk-On regime takes effect when both the stock market trend and the credit market trend are positive. Any other combination of these indicators signals the Risk-Off regime.
During the Risk-On regime, the portfolio increases its exposure to risk by adopting a more aggressive target asset allocation. During the Risk-Off regime, the portfolio takes a more defensive stance and reduces its exposure to risk.
The strategies are implemented using widely known and liquid equity, bond, and gold ETFs.
To achieve simplicity and effective diversification, only uncorrelated assets with a positive long-term expected return and different economic characteristics are used. These asset classes are represented by three respective ETFs.
We use only monthly data, which is updated at the beginning of each month.
No, all transactions are simulated at the opening price of the following month, in line with the algorithm’s guidelines.
This strategy consists of ETFs that comply with UCITS regulations, are available in the European Union, and are denominated in euros. Investors with access to the US market may choose strategies denominated in USD.
USD ETFs were included in the past to test a longer strategy period, due to the shorter history of UCITS ETFs or low liquidity. These ETFs were converted into euros.
How to use
Users with the Professional plan receive a monthly e-mail with updates on the target asset allocation for each strategy, including any changes. Alternatively, you can log into your account at the beginning of each month and check the target asset allocation for each strategy on the respective dashboards.
Click anywhere on the row of the desired strategy in the table, except on the linked areas. The charts will automatically recalculate.
Press “Explore in Details” or the strategy’s name in the table on the Summary dashboard, and the detailed analytics will open in a new tab. You can also select the strategy’s dashboard from the customer zone menu on the left side of the page.
Detailed information is available on the specific strategy’s dashboard.
Just press the “Ctrl” key and select as many ETFs as you wish.
In the top-right corner of each chart or table, find the “More options” icon and select “Export data.
Yes, every chart or table could be expanded by pressing “Focus mode” button in upper right corner of the chart or table.