For The Conservative Investors

If All Your Answers Are YES, Then Risk Balancer Is For You!

How Is Risk Balancer Different

See How An Unleveraged Risk Balancer (RB) Stack Up Against The 60% Stocks /40% Bonds (60/40)

Concept Behind Risk Balancer

Risk Balancer Did Well From 2002 - 2020*

Frequently Asked Questions

1. How frequent are the signals updated?

The frequency of the signals varies depending on the strategies. There are strategies that uses a monthly rebalancing methodology while some are triggered based on meeting the quantitative criteria specific to the strategy. The only exceptions are when you first start because you are recommended to buy all the holdings currently inside the portfolio; and when a strategy level rebalancing is triggered for the multi-strategy signal. In any case, you will receive a daily update in the form of an excel file on the portfolio composition in Telegram. But you are only expected to trade (except for a new subscriber who have not built the portfolio) when a BUY/SELL/CLOSE OUT signal is indicated on the security.

2. Are refunds available?

Refunds are not available. Our monthly subscriptions are priced affordably and we are confident that in the long run, you will see the difference.

3. Are returns guaranteed?

No, they are not. All investments carry risks of loss. No one in the world can guarantee returns. Anyone that lightly uses the word "guarantee" on a specific level of return, in particular high returns, without demonstrating credible and verifiable mechanisms of how they can uphold the guarantee is a big red flag.

4. What is leverage and is it necessary?

Leverage is borrowing money to boost your returns. You can use leverage if you have a margin account with your broker. A 1.5x leverage means you borrowed $0.50 for every $1.00 you own.

With low risk strategies, a calibrated and conservative use of leverage can be an added boost. But ultimately, this is up to your own risk preference. If you are averse to leverage, you can scale down the strategy accordingly. For example, if you are implementing the trend strategy which has a leverage of up to 1.5x, you will scale all the positions down by 1.5x. Similarly, if you want more leverage, you can scale it up as well. But having said that, leverage is a double-edged sword. It can amplify your returns. It can also magnify your losses. So we do not recommend taking higher leverage than necessary.

5. Is there a recommended broker?

Any broker that allows you to trade US securities at a low cost and provides margin account is fine.

6. How different are you from other signal providers?

Most signal providers out there are short term traders (typically intraday to holding periods of a few days) that focus on one or a few securities. Their performance can be highly erratic, swinging wildly from good to bad. And it is a challenge to find any that can last over the long term.

We take things with a long-term perspective using a systematic quantitative portfolio approach. Our positions are much longer term and less sensitive to time. Each of the 4 strategies specialize in different things using tested principles. They can work as standalone strategies. They can also complement each other in navigating the markets for a more robust performance. The end result is a more stable portfolio.

7. When are the signals delivered?

The signals are published on Patreon every trading day before 6:00 AM (US Eastern Time, New York). That leaves you ample time to place in the trades before the market opens. But do note that, while we will endeavor to send the signals on time, there may be exceptional circumstances beyond our control that prevent us from doing so. For example, network provider issues, Patreon server errors, data providers are down etc.

8. Is it necessary to have the minimum required capital in order to run these strategies?

The minimum required capital is a function of sizing precision and trading costs. The smaller your capital size, the harder it is for you to size the positions in your portfolio to match the model. And the smaller your capital is, the higher is the trading costs since most brokers do charge a minimum commission irrespective of your trade size. So it is with this in mind that we recommend a minimum capital requirement.

9. Why do my performance differ from the model even though I have been following the signals?

The performance will not be exactly the same as the model for various reasons.

• Your weights will not be exactly the same as the model as the latter are estimated weights. The model weights are computed based on the latest closing price which will be different from the executed price when the market opens. But such deviations should not affect the overall performance significantly as we are diversified across many positions, we are long term, and we invest only in liquid securities.

• Your weights can also differ from the model because of sizing precision issues. The less capital you have, the lower your precision unless your broker offers fractional shares trading that allows you to buy or sell less than a share. But if you have larger accounts, then sizing is less of an issue.

• Your trading costs can be different from that used in the model. Different brokers charge different commissions. Your fills or executed price can also be different.

10. Are these live performances?

No, they are model performances. But these models are adapted from working live strategies. We update the performance of the models every month.

Disclaimer

The information on this site is provided to you solely for information. It is not intended to be, nor shall it be construed as, investment/trading advice, an offer, or a solicitation of an offer to enter into any investment transaction. Past performance, whether actual, hypothetical or historically backtested is neither necessarily indicative of nor a guarantee of future performance. All investments carry the risk of loss. The use of leverage can further magnify both gains and losses. We will not accept liability for any loss, including opportunity costs, which may arise whether directly or indirectly from the use of the information or materials, whether in part or in whole, from the site and services rendered.