Our process is built upon our strong belief that individuals cannot consistently outperform proven Quantitative models. These models are designed with an understanding of Quantitative analysis and mathematics and are successfully used today in hundreds of environments. Examples could be lane departure and collision avoidance systems in your car all the way to complex control systems used in commercial aircraft.
Porter Investments’ technical advisers have spent hundreds of hours searching and learning from model developers that have formulated what we feel are some of the very best growth models available for individual use. We construct our strategies from this select group of outstanding models. After considerable research, we have developed our own proprietary mix for each strategy.
What is different by using quantitative models?
To fully understand the Porter Investments' process, it is important to distinguish between the commercial models that we use and our Strategies that utilize those models.
The models we have chosen to guide our clients accounts are systems developed by professionals with an excellent understanding of Quantitative Analysis. From the thousands of models that have been developed that attempt to help identify and quantify directional changes in the broad equity market, we believe that we have some of the best models that are available to investment advisers. These models have been developed using one or more of the quantitative analytics below:
- Trend following
- Reversion to the mean
- Pattern Recognition
- Sector Rotation
- Relative Strength
The detailed selection process by our technical team has been proven through years of research, independent studies, and ongoing interactions with model developers. The result of this process is that we have access to ten or more quantitative models. All the models we use have been verified, with 50% of them verified for over 10 years.
We define a Strategy as a proprietary mix of up to 4-6 different models to achieve a specific risk/reward profile, while at the same time providing portfolio diversification. The Strategies' mix of the various models and their percent allocation is different for each strategy. We analyze the analytics and the subtle nuances of the various models to determine the best “mix” and allocation of models for each of our Strategies. By combining an optimum number of models, in a proper allocation, we produce a multiplicity of strategies that can fit certain risk/reward requirements for you. Collectively they form our Strategy lineup.