What is a portfolio idea anyways?
Portfolios are carefully selected stocks that produce a stable and robust composite yield on the short run.
How portfolios are constructed?
- Scan for stocks that have strong prediction
- Generate up to 10 million, N elem combinations from those stocks, that are called buckets which is a kind of portfolio draft
- Each portfolio yield is based on the mean of individual item yields achieved by purchasing strong predictions and denying weak ones, essentially its not a simple yield calculation but a micro-range simulation
- Filter buckets by stability, yield mean, yield gradient and a lot of proprietary conditions including cluster distances
- Remove overlapping buckets and keep only the best
How should I use portfolios?
We suggest that if you go in buying portfolio items, you should purchase the most of it, and purchase equal amount of stock value from each.
This ensures that you will construct the same portfolio that the idea suggests and the calculations predict.