7H
I think your portfolio is great! Uncorrelated asset classes and strategies in a number and weighting that seems to make sense. You've really learned a lot here on Getquin. 👍
One question: What is the principle of your weighting? Max Sharpe ratio? Max Min Drawdown? Inverse vola? This is where strategy could possibly come in.
One question: What is the principle of your weighting? Max Sharpe ratio? Max Min Drawdown? Inverse vola? This is where strategy could possibly come in.
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That is perhaps the only "problem" I have with my portfolio. The weighting is based more on intuition than on fixed principles.
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•6H
@Psychedelic_Sunflower And? Do you want to go there? You have largely freed yourself from intuition when it comes to asset classes.
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•How would you go about it? The first question is, of course, what I want. The answer here is: the highest possible return from the existing strategy and asset mix in 15 years. A certain amount of volatility is acceptable with a corresponding return, but in 6 years €30,000 should ideally be liquidated with a worthwhile profit. Preferably gold or Bitcoin, as they are tax-free.
What key figures would you pay attention to here?
What key figures would you pay attention to here?
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•5H
@Psychedelic_Sunflower Basically, with the "maximum return" target, you naturally hold 100% of the asset from which you expect the highest return. However, there are risks, and the return can be seen as a risk premium: BTC can go to 0, gold can be banned, momentum effect can disappear, global economy can plunge into a decade-long crisis. So you try to find the optimum balance between risk and return for the allocation of asset classes. This can be found using Markowitz Optimization: minimum variance or Max Sharpe Ratio. The latter is more likely to be an option for you: the best risk/return ratio. Google that. I'll try to explain the whole thing in the next 3xGTAA update.
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@Epi just. As I am not clairvoyant, I spread the risk. If I go purely by the Sharpe ratio, I would have to go 100% into 3xGTAA (if the figure of 1.4 on Wikifolio is correct) ACWI, gold and Bitcoin are all below 1 in the long term
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5H
@Psychedelic_Sunflower Almost 😉
By mixing asset classes, the expected return decreases, but the SR increases. There is an optimum.
By mixing asset classes, the expected return decreases, but the SR increases. There is an optimum.
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Are there any practical tools to calculate this? I couldn't let the calculation go back very far because of BTC and your certificate🤔
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4H
@Psychedelic_Sunflower I don't know any tools other than the ones I created with the AI. But I think there is something like that on the net. 🤷
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