QuantDesk^® Optimizer

Fine-tune your portfolio for optimal performance

What is the Optimizer?

The QuantDesk® Optimizer recommends how to rebalance your cash among a portfolio’s holdings according to a given risk tolerance. The portfolio Optimizer enhances Markowitz’s modern portfolio theory (MVO) by which it incorporates Lucena’s machine learning price and volatility forecast for the assets in the portfolio. In addition, the Optimizer supports the following rules / constraints:

Minimum and maximum allocation constraints
Optional alpha inputs
Optional risk model inputs
Orientation guidelines such as Long, Short, or Long/Short

How the Optimizer Works

Load Your Portfolio:

You have the option to manually enter your holdings and positions size, upload a CSV file or connect directly to your brokerage account.

Set Your Optimization Settings:

Enter min/max constraints, risk tolerance, and one of the available alpha inputs: Historical return, forecast return, or your own sentiment.

Click Optimize and Inspect the Results:

QuantDesk® provides a thorough comparison of the pre and post optimized portfolio. You can easily make adjustments and re-run to compare results. When you’re satisfied with the optimizations, the transactions are provided to efficiently transition from your portfolio’s old state to the optimized allocation.

Why use the Optimizer?

Backtesting: Test the Optimizer’s efficacy over time and out of sample by turning back time and simulating decisions based only ondata
available at the time an investment decision would have been made.

Sample Heading

1. Historical return: The optimizer assumes future returns will match historical returns.

2. Price forecaster: The Optimizer can leverage our Machine-Learning-based price projections as the alpha input to our optimizer.

3. User sentiment: Use price projections based on your own research.

Risk goals: 10 risk levels to choose from, ranging from most conservative to most aggressive forecaster output.

Efficient Frontier visualization: View volatility/return chart and assess your portfolio’s position with respect to Markowitz’s efficient frontier.

Discover more:

QUANTDESK® MODULES

Interested in taking the next step?

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QuantDesk® Optimizer