Solutions for Professionals


and individuals with portfolios of more than $10M


ETFOptimize Pro

The 'ETFOptimize Pro' products are designed to deliver exceptional performance for Money Managers and wealthy Individual Investors. Please contact us for a proposal customized to meet your needs.

 


Solutions for Professionals

This page provides information about enhanced versions of the ETFOptimize rules-based models, designed for use by professional investors, licensed advisors, or wealthy individuals with more than $10 million portfolios. We define "Professional investors" as:

1) Individuals or firms managing the investment funds of two or more individuals. This group includes Mutual Funds, Pension Funds, Retirement Funds, Endowment Funds, Registered Investment Advisors (RIAs), and other professionals;

2) Individuals or organizations licensed by federal or state government regulatory agencies to manage investments; or

3) Wealthy individual with portfolios of more than $10 Million.

For these individuals or firms, we offer two solutions to meet their higher-volume needs, protect wealth, and grow assets: A) Professional versions of our existing investment strategies, or B) Bespoke Strategies designed from the ground up to meet your needs.

Product #A) Professional Versions

Professional Versions of our existing strategies utilize ETF universes with greater liquidity to accommodate the larger trades required by professionals or wealthy individual investors. Also, the Professional Versions of our strategies can produce greater performance that meets the demands placed on multi-client professionals that accommodate the higher post-fee returns that clients expect from professionals.

We will carefully balance the objective of higher returns with other requirements built into our investment algorithms and ETF universes, such as maximum trade frequency, max drawdown, max standard deviation, higher risk-adjusted returns, or other measures that accomodate your client's expectations.

If you sign up for the Professional Version of our existing models, you will receive a private, password-protected website address dedicated to your customized strategy subscription. You will be the only entity outside our firm that can access the secure, password-protected URL of your Professional Strategy. You are welcome to repackage our data in your website's style/format, or you can refer your clients directly to the page. Upon request, we can also customize the page(s) to the color and logo specifications that match your corporate image.

This cost for the professional versions of our Premium Strategies is based on your AUM and required model performance objectives. Please provide the information listed here for a price quote tailored to your needs. We'll arrange a phone call to answer your questions and discuss details.

Product #B) Bespoke Strategies

Bespoke Strategies are custom-designed models built from the ground up to meet your specific investment needs. Upon completion and payment, you or your firm will own the copyright to all components of your systematic strategy, including the market-exposure criteria (risk assessment), Buy-Rule/Sell-Rule sets, customized ETF-Universe selection formulas (the specific ETFs in the overall Universe can change slightly at each rebalance, based on changes in the liquidity requirements and other criteria you establish), scientifically tested ETF-Ranking Systems using composites of uncorrelated Algorithms. After delivery, we can provide up to one year of training, fine-tuning, maintenance, and customer service at no additional cost. Subsequent years can be contracted for a modest annual retainer.

The ETFOptimize Strategy Design team has more than 50 years of combined experience constructing custom, quantitative algorithmic strategies. We'll tap into our team's industry-leading experience to build sophisticated, rule-based model(s) built from the ground up to meet your specific objectives.

We have experience building data-driven investment strategies using a wide range of approaches to satisfy a professional investor's higher-performance requirements. One approach frequently requested is to build a gap-filing model to enhance and balance your existing position-selection and overall portfolio-management approach. Upon request, we'll examine your current system for robustness and completeness using multiple stress tests – and construct a custom strategy that will fill weaknesses in your approach's decision process or performance. The approach we recommend will enhance returns with lower volatility and provide greater consistency throughout the business cycle.

Our most popular model approach involves an integrated, uncorrelated set of multiple systems using a variety of approaches (similar to our public six-model Ultimate Combo Strategy) – or at a lower cost, two or more individual models created to fill a specific gap you've identified in your portfolio-management needs. For example, we can create an effective defensive strategy to supplement your existing long approach (if you are satisfied with it).

We usually construct our systems on the Portfolio123.com platform. P123 offers high-quality, point-in-time databases and flexible model-building algorithms. The other platform we regularly use for backtesting models is TradeStation.com, because indicies such as the S&P 500 or the Dow Jones Industrial Average can be tested bak to 1925 or 1900, respectively.

Once a Bespoke Strategy is completed, we can port it to your preferred platform choice (i.e., Tradestation, Metatrader, Python, R, and others) for an additional fee to compensate for the time required. The cost for the platform you choose is not included in the price we quote. However, this cost is usually well within the budget of professional investors.

Details

Performance:
Professional Strategies can attain higher performance levels than our current, publicly available Individual-Investor strategies (if desired). Obviously, there are tradeoffs associated with attaining a consistently higher portfolio performance, but with the ETFOptimize design, additional portfolio risk may not one of them. If you express this desire, there are several options and considerations we can discuss.

We designed our currently available quantitative models for Individual Investors to maximize holding time and minimize drawdowns – with both aspects balanced with better-than-average Annual Returns. However, if you are willing to accept more frequent trades (the current average for public models is about 3 months) or slightly higher drawdowns, we can build you a strategy with higher annual returns. We can discuss the details of the relationships between these factors and come to a mutually agreed approach in our discussions.

Copyright:
We retain all algorithms and intellectual-property copyright for Pro-level Existing Strategies and the various formulas, data sets, and algorithms are not disclosed. However, a custom, Bespoke Strategy is built exclusively for your use, substantively different from any other investment strategy we have constructed, and includes an intellectual-property copyright you will own in full. This policy assures that you or your firm's specific approach is unique and won't be sold again to another client.

The bespoke approach we develop for you is based on interviews with you or your designated staff. To avoid unnecessary revisions or disappointment, it is your responsibility to communicate your needs as thoroughly as you are able. If desired, we can optionally combine the strategy we create with your existing investment approach. However, this objective must be communicated up-front, and your existing approach must be made available to our strategy engineers at the start of the design phase.

Analyzing your current approach will allow us to determine where there are gaps that can be filled to make your portfolio more robust and consistent, with potentially higher returns and minimal drawdowns. Analysis of your existing approach is not required; it is at your discretion. However, if a more complete approach is your objective, the more information you can provide as early in the process as possible, will greatly enhance the finished product and minimize time and costs.

Experience:
The ETFOptimize Strategy Design Team working on your project has more than 30+ years in building and operating quantitative strategies for well-known investment firms such as Goldman-Sachs, Merrill-Lynch, Drexel Burnham Lambert, Orion Capital, Inc., Optimized Investments, Decker Retirement Planning, and many more.

Pricing:
The total cost for a turnkey quantitative strategy depends on the complexity involved and your performance objectives. Included in this cost, your strategy's designer is available to provide training for the model's use, resolve any concerns, and answer questions for an agreed-upon period after the delivery of your model. After the first post-delivery period, we offer continuing consulting and regular model updates with an annual retainer.

The Professional Versions of our Current Strategies have monthly, quarterly, or annual pricing at a premium to the cost for the Individual Investor models. For this premium, you get higher-volume ETF universes, potentially higher performance, and professional-level customer service. There is a $2,000 set-up fee for Pro-Level quantitative strategies, which includes establishing a custom URL dedicated to your customized strategy.

Custom-designed Bespoke Strategies include the Buy/Sell Rule algorithms, Ranking System, ETF Universes, risk-assessment and market-exposure algorithms, all source-code, and copyright ownership. We can port your custom strategy to the platform of your choosing if that platform can accomodate our sophisticated models. Combinations of uncorrelated strategies integrated into single, elegant systems (similar to our Ultimate Combo Strategy) can be built to meet your needs.

Retainer: To get started, a payment of 50% of the agreed cost is required to begin development of your custom, Bespoke Strategy. The balance, plus any pre-agreed expenses (for porting to an alternative platform) due upon completion.

To get started with #A) a Professional Strategy version of existing models, or #B) a Custom, Bespoke Investment Strategy explicitly designed from the ground-up to meet your needs, please submit the information requested below:

 



Pro-Level or Bespoke Investment Strategy:

Initial Contact Request

 

If you are managing the investment funds of others or are an individual investor with a portfolio of $10 million or more, please contact us via a Support Ticket to schedule a phone appointment to discuss details and obtain a price quote on a #A) Pro-Level Strategy or a #B) Bespoke Strategy. In your initial contact, please include the following information, which we will use as the basis of our phone conversation:

1) Your name;
2) Your title (if with a firm);
3) Your company name (if applicable);
4) The type of company/investment firm you represent (if applicable);
5) Number of employees in the firm;
6) Your phone number, email address, physical address, and other contact information;
7) The total amount of funds (in dollars) you are managing (AUM);
8) The approximate amount (in dollars) you anticipate managing using an ETFOptimize systematic strategy;
9) The (approximate) total number of clients applicable to #7 above;
10) The number of years your firm has been managing client's funds (or personal funds if more than $10 million);
11) The product in which you are interested – either:
    #A)
an enhanced, Professional version of our existing models; or
    #B)
a fully customized, ground-up Bespoke Professional model; and
12) Any other information you believe is pertinent for our consideration. Transparency is appreciated.

Please submit this information in a Support Ticket from this location:

— ETFOptimize.com Professional Strategy Inquiry —

 

 

We look forward to hearing from you and building a customized configuration that meets your needs!


ETFOptimize.com

Since 1998, providing individual investors, investment advisors, and fund managers with high-performance, rules-based and data-driven investment strategies, available at affordable prices.

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