Have you ever been on the receiving end of an investing tip? Perhaps your friend’s wife works for a firm who, at any moment now, are going to announce a new customer which will make their stock price soar. Whether or not these opportunities ever arise is a topic for another debate. One thing is for sure, this water cooler talk is not a dependable investing strategy which will allow you to achieve any long-term success.
The Investing Process
We built Aikido to tackle the above problem, our simple strategies allow you to add a sensible structure to your investment process. We present outperforming alternatives to the most recently hyped tech stock or index fund. Don’t confuse simplicity with performance. Over-engineered or data-mined strategies do not outperform the factor based strategies we display. We removed anything which we believe to be irrelevant to the flow of quant investing, giving you a clear process to start outperforming. To make use of our powerful tools and to begin your data-driven investing approach, follow these easy steps:
1. Choose a strategy
Find one which appeals to you. The Stable Dividend Strategy, for example, presents a list of stocks which payout its shareholders through regular dividends. It outperforms the broader market, since 2003. For each strategy, we share its historical performance, the strategy’s filters, and most importantly, the stocks which appear in it.
2. Enter an Amount to Invest
Once you’ve decided on your strategy, the ‘Strategy Stock Screen’ section provides you with a list of companies which currently appear in that strategy. You can enter the amount of money you’d like to invest, click go, and Aikido will indicate the number of shares of each stock which you can purchase in order to equal weight your portfolio. This means that you can invest an equal dollar amount in each stock. If you had $25,000 to invest in a 25 stock strategy, then each company would receive $1,000 investment.
3. Purchase the Shares
When you’ve picked your strategy and have got the list of stocks to invest in, then you’re ready to invest. Go to your favourite broker and buy stocks based on the figures from ‘Shares to Buy’ in the previous step.
Rinse and repeat. Make note of the rebalance period of the strategy. If it’s ‘Yearly’, then you will need to turnover the portfolio in one year. If it requires a ‘Quarterly’ rebalance, then you will need to do it in 3 months. Finally, if it requires a ‘Monthly’ rebalance, then turnover the portfolio each month. It’s that simple.
Check out our library of strategies and make the best investment decisions.