How we Do it
The Quantmade Wealthtech Suite
The WealthTech Suite of Quantmade is a comprehensive set of quant models, strategies and portfolios designed to empower asset managers, family offices, high-net-worth individuals (HNWIs), and funds with advanced quant-driven investment capabilities. It leverages Quantmade’s expertise in quantitative analysis, artificial intelligence, data science, and financial modeling to provide state-of-the-art solutions tailored for modern wealth management.
Key Features of the Wealthtech Suite:
- Quant Portfolio Strategies
Advanced algorithms like RESIST, CLIMB or COLLECT for constructing and running portfolios that maximize returns while minimizing risks. - Quant Portfolios
A robust suite with various Quant Portfolios (Quant-driven Equity Portfolios) – ie. RESIST US 100 – , analyzing financial data of US stock universe, and generating actionable trading signals using proprietary models and machine learning techniques. - Custom Combination of Strategies
Design and use bespoke total quantitative investment strategies by blending various Quant Portfolios – i.e. 50% RESIST US 100 and 50% RESIST US TEch 100 – tailored to unique goals in terms of risk, return and correlations to meet investors demans and market conditions. - Risk Management and Analytics
Risk monitoring and analytics to assess exposure, stress test portfolios, and adapt to changing market dynamics. - Integration with Wealth Management Platforms
Seamlessly integrates with existing wealth management software, enabling smooth workflows for portfolio management and reporting for asset managers - Machine Learning-Powered Signals
Predictive analytics and data-driven signals to identify market trends, optimize entry/exit points, and enhance decision-making. - End-to-End Semi-Automation
Automates routine tasks like rebalancing, reporting, and compliance checks, allowing asset managers to focus on strategy and client relationships and gives them the final choice. - Data Connectivity and Insights
Access to a broad range of financial datasets and the ability to integrate with third-party APIs.
The six Quant Portfolios build the core of the Wealthtech Suite
Combining different Quant Portfolios
Flexible Implementation Options:
- For Quant Managed Accounts:
Clients have full flexibility to define their own portfolio combinations or can leverage Quantmade’s proprietary Dynamic Optimization (DO) model. This model adjusts asset allocation among the portfolios based on a six-month forward-looking forecast, ensuring an optimal balance of risk and return. - For Quant Funds and Certificates:
Investment vehicles such as funds or certificates are powered by either static or dynamic combinations of these portfolios. Static setups provide consistency, while dynamic combinations adapt to evolving market trends for superior performance.
Benefits of Combining Quant Portfolios:
- Enhanced Performance:
Blending uncorrelated strategies allows for greater stability and consistent alpha generation across market conditions. - Risk Diversification:
Combining independent, data-driven portfolios mitigates risks and reduces overall beta, making the portfolio less vulnerable to market volatility. - Adaptability:
Machine learning signals and real-time risk analytics enable precise timing and adaptability, maximizing returns while minimizing drawdowns.
This modular and dynamic approach ensures that investors can achieve a tailored strategy mix that aligns with their goals, balancing high returns with lower risk—ideal for sophisticated wealth management.
Core Quant Methodology
Timing (the-market) instead of Time (in-the-market)
Using our AI-driven stochastic models, we predict price movements with a measurable degree of probability. This approach allows us to maintain positions as long as the likelihood of an upward trend remains favorable, ensuring a strategic advantage. Each position is managed independently with its own model-driven exit strategy.
Unlike traditional investors, we operate as quantitative traders, employing a highly dynamic investment strategy. This enables us to minimize drawdowns by shifting predominantly to cash during market downturns while capitalizing on upward trends. By avoiding constant exposure to individual stocks and strategically moving fully into cash when necessary, we effectively mitigate risk while consistently achieving exceptional returns.
Probablity based Zero-Lag Turnaround Swing Reversal Systems
Our Quants predict swing patterns for the next 10 days with high accuracy
Example: Coca-Cola Y21/22
As can be seen in the chart of Coca-Cola, the Quant models avoid unintersting enteries with a low degree of upside potential. The Quants are able to differentiate between lower and higher volatility and adapt dynamically to market changes. This supresses drawdowns, buffers risks and increases returns – everything we want.
