UTM Files Project

Part 1 – OmniFunds and the Trade Equalizer October 24, 2015

Goal: Steady Returns. Low Risk.

Modern Portfolio Theory

Wealthfront.com has $2 billion under management. They place their clients in various portfolios based on several factors entered on an intake form (time to retirement, etc.) Here is the recommended taxable account portfolio on their site.

Modern Portfolio Theory

1/1/15 - 9/25/15 Wealthfront’s Taxable ETF Portfolio S&P 500 (SPY) SPY did better.

Down 6.9%

Down 6.5%

Wealthfront Taxable Portfolio

S&P 500 (SPY)

Improving on M.P.T.

DYNAMICALLY SWITCHING Asset Mixes depending on Market Mode, we can achieve superior results with less risk. We have the Platform. We just need to perfect the Indicators that drive Switching, Ranking, and Filtering.

Nirvana Club Collaboration

Through Collaboration, we can share the individual assets that continually advance us towards the goal:

• Market State Indicators

• Filtering Indicators

• Ranking Indicators

• Allocation Functions

• Trade Plans

Forum: The Place for Feedback

“Platforms vs. Apps” Understanding OmniFunds

Platform Progression

VisualTrader

OmniFunds “Plug-In”

Multi-Group “Switching”

Trade Equalizer “Signals”

Broker (IB, MB, GX)

OmniFunds Stand-Alone

(est Q4 2015)

OmniVest Platform

(est Q1 2016)

MG TE

TE MG

To GO fast, we implemented DMSS, Filtering, Ranking, and various Switching and Signal methods in VisualTrader. The Stand-Alone Platform will BE FAST. Ultimately, OmniFunds automations can be uploaded to OmniVest.

Basic Process

Feedback

Definition

Indicators

Plot Color Charts and Indicators

Advance the simulation

Set up to test the concept:

Multi-Group Balancing Method

Group Targeted

Selection Filter Set

Profile must match the method.

Specific Instance Loaded

Using OmniFunds

1. Trade Equalizer

Concept: Trade Signals and Trade Plans with Variable Allocation based on Market State.

DMSS in OmniFunds

Dynamic Market State Switching enables us to complete change all settings and allocations when a new Market State is detected.

All Switching Method Settings can change when the market

changes its character!

2. Strong ETFs

Concept: Trade the WEAKEST STOCKS within the STRONGEST ETF. Coming: Ability to evaluate all ETFs (and their components) in the profile.

3. Mean ETF Strength

Concept: Trades the Strongest ETF in an ETF group by evaluating the components with up to 3 indicators.

4. Timing and Safety

Concept: Use Cutoffs on up to 3 Indicators to improve candidates based thereon.

5. Multi Group Balancing

Concept: Trade 1-N Groups with different allocation and trading rules for each one. This is the “Swiss Army Knife” of the OmniFunds collection.

Programmer SDK

For Programmers Only…

Simple VS Project enables programmers to create new Switching Concepts in a very short period of time…

Actual Code for the Strong ETF Method: 1. Get 2 symbols

from the form. 2. Calculate Relative

Momentum 3. Select ETF with

the higher RM 4. Return the

symbols in the chosen ETF.

Thank You!

Another Idea

“Buy the Market ETF when it shows a 5% or more correction, with at least 1 bar up.”

Buy SPY on Major Corrections