FAQ
Systematic Portfolio Management
What is Systematic Portfolio Management ?
Inspired by the methodology akin to BlackRock's Systematic Investing, our solution marries the trinity of technology, robust data analysis, and human financial acumen. We're not just reacting to market evolution; we're leading it with a tailored approach to investment that sifts through uncertainty to find potential and performance.
Systematic investment strategies are among the most effective as they eliminate human bias in investment decision-making, enable the harnessing of vast datasets for investment insights, and utilize sophisticated analytical techniques to transform these data into useful investment information. True skill lies in constructing a balanced portfolio that optimizes the return on investment for a given level of risk.
At the heart of Modern Portfolio Theory is the concept of the 'efficient frontier', a line that represents the most efficient portfolios in terms of risk relative to return. At Trustia, our adjustable quantitative algorithms are designed to navigate and identify your ideal position on this frontier.
What Sets Systematic Portfolio Management Apart ?
✔️ Bias-Free Decision Making: By employing algorithms and models, we minimize human error and emotional influence, paving the way for more rational and consistent investment decisions.
✔️ Data-Driven Insights: Our strategies are fueled by extensive datasets, which are processed to extract meaningful investment opportunities through sophisticated analytics.
✔️ Disciplined Construction: Expect a well-calibrated portfolio where balance is key—optimized for return, mindful of risk, and considerate of correlation and cost.
What is No-Code Strategy Builder ?
Trustia offers you a codeless strategy generator to simplify and expedite the process of creating your investment strategies. We understand that time and efficiency are key elements in the finance industry, which is why we have developed an innovative solution to help optimize your operations.
Our codeless strategy generator allows you to design customized investment strategies without requiring programming skills. You can easily define your goals, criteria, and preferences, and our tool will automatically generate the underlying code. With our codeless approach, you can quickly and efficiently create investment strategies tailored to your specific needs.
Furthermore, our codeless strategy generator offers you complete flexibility. You can adjust and optimize your strategies in real-time, taking into account market conditions and changes in your portfolio. This agility enables you to remain responsive and make informed decisions to maximize your returns.
How to create a strategy ?
With Trustia, create a fully personalized weighting strategy, specifically tailored to your investment objectives, risk tolerance, and market outlook. Our no-code generator allows you to design investment strategies that precisely match your needs. Whether you aim for long-term growth, stability, or innovation in specific sectors, Trustia provides the tools to achieve it.
Designed to simplify and accelerate the process of creating your investment strategies, our tool paves the way for more intuitive and personalized asset management.
What is Dynamic CPPI ?
In the world of investments, balancing growth potential with capital security is a constant challenge. Trustia meets this challenge with its Dynamic CPPI, an innovative solution designed to optimize your exposure to risky assets while safeguarding your capital against downside risks.
Our Dynamic CPPI offers a unique approach to maintain exposure to the potential upside of risky assets while ensuring protection against downside risks. This method is essential for investors looking to benefit from market growth while protecting their investment.
To guarantee the invested capital, a position in stablecoin dollars is maintained. This strategy provides an additional layer of security, protecting you from unpredictable market fluctuations.
In addition to stablecoins, the Dynamic CPPI includes a carefully selected basket of assets to drive your portfolio's performance. This combination allows for a balanced approach, capturing the growth potential of assets while minimizing risks.
What is Backtesting ?
Backtesting stands as a cornerstone analytical process, empowering investors to evaluate the efficacy of investment strategies by simulating them on historical data. This sophisticated technique is not just about conjecture but about informed predictions, allowing asset managers to see through the lens of time how a strategy could have unfolded.
Our backtesting engine delves into the complex algorithms that power investment strategies, rigorously analyzing potential outcomes. It's about detailed, quantified foresight - calculating the possible returns and delineating the risks involved. We place empirical evidence at the forefront, ensuring that asset managers can quantify the profitability and gauge the associated risks with precision.
What is Weighting Strategies ?
In the context of Systematic Portfolio Management, weighting strategies are crucial for aligning portfolio construction with the principles of Modern Portfolio Theory. This theory, which is based on diversification and optimizing the return/risk ratio, is at the core of our advanced statistical algorithms. These algorithms enable the development of a customized weighting strategy, perfectly tailored to your investment objectives.
Choose from a range of weighting strategies including : Market Capitalization, Maximum Sharpe Ratio, Minimum Volatility, Maximum Decorrelation and more. This flexibility allows for a diversified and optimized portfolio, adapting to your risk appetite and investment horizon.
What is Dynamic Asset Allocation ?
Over time, asset allocations can change as market performance alters the values of the assets. Rebalancing involves periodically buying or selling the assets in a portfolio to regain and maintain that original, desired level of asset allocation. Those levels are intended to match an investor's tolerance for risk and desire for reward.
Our product doesn't just set and forget; it continuously analyzes market conditions to adjust your portfolio's asset allocation. This helps maintain a predefined level of risk or target a specific performance benchmark, adapting to market shifts and trends. Consider a market downturn where certain sectors are hit hard. Our dynamic asset allocation tool would adjust the weights of these underperforming assets to protect your portfolio.
Who is in custody of the funds ?
The funds remain on your trading platform, Trustia only serves as a trade execution and portfolio management layer. The trustia platform does not have custody of the funds and cannot transfer funds.
Trustia simply connects your trading platform via API and takes care of executing orders. This integration allows for smooth and efficient management of your portfolio, while allowing you to maintain control of your capital.
What are trading platform API keys used for ?
APIs allow the user to connect their trading platform and execute programmed actions via a third-party platform such as Trustia. Thanks to APIs, Trustia can automate your investment strategies via third-party services to execute transactions and manage their portfolio.
Each exchange has unique APIs that allow users to manage their account through the Trustia app. The most common features of exchange APIs include placing orders, collecting account data, and accessing market data.
What is an execution layer ?
Our platform serves as a robust execution and portfolio management layer. Simply connect your trading platform via API, and Trustia takes care of executing the orders. This integration allows for a smooth and efficient management of your portfolio, letting you focus on strategy rather than the intricacies of order execution.
Trustia's interface eliminates the complexity of manually managing orders. Our system handles everything from precise order execution to secure wallet management, allowing you to focus on developing your investment strategies. This innovative tool allows you to develop a fully personalized weighting strategy that is specifically tailored to your investment objectives, risk tolerance, and market outlook.
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