AlphaDroid

High Performance Algorithms and Portfolios

Leveling the playing field for wealth managers

AlphaDroid investment strategies and portfolios level the playing field with Wall Street by putting the power of award-winning, high-performance investment algorithms in your hands.

Designed by and for advisors, our True Sector Rotation algorithm owns the momentum leaders in bull markets, and our StormGuard algorithm invokes a Bear Market Strategy algorithm to protect and grow your assets during bear markets.

 

Watch this 1-minute video and you’ll appreciate the power of AlphaDroid.

Cleaner momentum signals lead to better decisions.

 

Momentum Detection: It’s About Reducing Noise

The performance of momentum investing depends on its proficiency in extracting trend signals from noisy market data. Our advanced signal processing algorithms employ the cross-disciplinary sciences of Matched Filter Theory and Differential Signal Processing – the same technologies that enable WiFi, USB, iPhones, and remotely controlled rovers on Mars to perform so well.

Our goal is to produce low noise momentum that leads to:

  • Better fund selection
  • True sector rotation owning only the leader and avoiding the laggards
 

StormGuard™ – Market Risk Assessment

Risk is a complex problem, and diversification’s passive “risk dilution” is only just the start. Our research shows the most proficient way to reduce risk is through “avoidance” – specifically, avoidance of laggards and bear markets. StormGuard assesses the risk of U.S. equity markets using four key metrics: price-trend, market momentum, value sentiment, and market volatility.

StormGuard, our proprietary Bull-Bear Indicator clarifies our process to:

  • Pick defensive funds
  • Avoid rather than dilute risk

Access the version that fits your needs

AlphaDroid

Your AlphaDroid Trial Subscription Includes

  • Ready-to-Use Investment Strategies

    Access dozens of ready-to-use strategies and portfolios suitable for a wide variety of client types.

  • Advance Momentum Algorithm

    AlphaDroid strategies use our proprietary, advanced momentum algorithms to select the best-trending fund from a pool of up to 12 candidates based on market trends.

  • Effective Strategy Management

    Manage up to 500 investment strategies and 200 portfolios for efficient client account organization.

  • Market Crash Protection

    AlphaDroid's StormGuard algorithm advises strategies to move to safety during market downturns, preventing significant losses for investors.

  • Design Custom Strategies

    Create custom investment strategies from scratch using AlphaDroid's financial planning tools for both advisors and investors.

  • Automated Trade Alerts

    You'll receive Trade Alert email notifications when your strategies make new trades.

Keys to The AlphaDroid Process

Momentum detection is key to how we select bull and bear market funds. The challenge is to see past market noise with the aim of selecting momentum leaders.

Momentum Detection Icon

We automatically rotate to defensive funds in bear markets

Defensive Icon

We automatically rotate to defensive funds in bear markets

Signal Processing Icon

We automatically rotate to defensive funds in bear markets

Keys to The AlphaDroid Process

AlphaDroid Process

Bear Market Indicated

Bull Market Indicated

When StormGuard indicates a bear market, each of the portfolio’s underlying strategies selects a momentum leader from among a defensive set of candidate ETFs (such as bonds, treasuries, commodities, and others). StormGuard acts as Dual Defense’s first line of defense.

In Bull Markets, each of the underlying momentum strategies within a portfolio select a momentum leader from among a set of candidate equity funds, which includes a broad “backstop” fund designed to act as a performance floor for the Strategy. We refer to the backstop’s defensive benefit as “TrendGuard,” the second line of defense of Dual Defense. Most AlphaSheet portfolios incorporate the TRM (Tactical Risk Mitigation) Portfolio as its backstop.

Who We Are

Our technology and services are the result of more than three decades of research and development by SumGrowth Co-founder and CEO Scott Juds, a Stanford educated signal processing engineer.

The company’s first service, SectorSurfer, was launched in 2010. Today, over 25,000 online subscriber strategies and portfolios are processed daily.

Why Choose AlphaDroid

1

Client Friendly Deliverables

Each model comes with information that’s easy to share including simplified charts describing portfolio construction and easy-to-understand performance explanations.

2

Advanced Momentum and Risk Mitigation

Our advanced momentum detection and risk mitigation methodologies improve the selection of bull market leaders and provide better bear market exits.

3

Simplified Portfolio Management

Our professionally developed Investment Models eliminate the need for technical analysis and trading platforms so you can focus on acquiring and serving your clients.

AlphaDroid model portfolios represent the product of 30 years of research.

Example: The SNUG Tactical Risk Mitigation Portfolio

The SNUG Tactical Risk Mitigation Portfolio is our flagship defensive portfolio designed for conservative investors seeking steady growth. The portfolio is made from four underlying strategies that utilize our cutting-edge rules-based momentum algorithm to select trend leaders from a diverse universe of over 60 ETFs, including bonds, treasuries, gold, and the S&P 500. With a 60/40 backbone and the inclusion of defensive ETFs to challenge momentum leadership, the Tactical Risk Migitgation Portfolio offers a superior approach to defensive investing.

Leverage AlphaDroid For Your Practice

AlphaDroid Portfolios

The AlphaDroid is a great fit for RIAs who:

Prefer to focus on relationship management rather than portfolio management.

Appreciate an advanced, yet easy to communicate process to help guide client expectations.

Need a comprehensive set of strategies that addresses each of their client investment profiles.

Conquering The Seven Faces of Risk

"This book is one of the very few ‘must read’ books. For those who have been burned by the ‘diversify and rebalance’ mantra, Conquering the Seven Faces of Risk is sorely needed, and Scott Juds truly delivers. As a fiduciary, I find SectorSurfer’s risk mitigation algorithms to be so far superior to the conventional buy-hold-and-rebalance models that I cannot justify risking my clients’ assets with the latter. I am impressed with Scott Juds’ mission to educate the retail investing community."

David Yeh, MD, (Retired Nuclear Physician), Investment Advisor, and Author of The Busy Doctor’s Investment Guide

  • The FEDS (FINRA, ERISA, DOL, SEC) are silent on quantitative measures defining suitable and prudent risk management.
  • While a wide latitude helps advisors satisfy client needs, it provides no basis for defense in a risk management audit.
  • However, industry consensus definitions for risk-ranked portfolios are entrenched and accepted by the FEDS. Thus, their risk measures quantify suitable and prudent risk.
  • Extracting trend signals from noisy  market data in a manner that has been the most  predictive of next month's performance.
  • Walking forward in time through new out-of-sample data using the previously determined best performing momentum algorithm.
  • Fully automating the process to allow investor to focus on the higher level task of choosing candidate sets of funds that play well together.
  • Modern Portfolio Theory is 65 years old, developed long before computers could analyze daily time domain data.
  • Temporal Portfolio Theory extends MPT by utilizing the cross-disciplinary sciences of Holistic Risk Management, Matched Filter Theory and Differential Signal Processing
    to improve overall investment performance.
  • Only by owning the trend leader and avoiding the laggards can one simultaneously improve returns and reduce risk!
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Scott Juds

Scott Juds, Chairman and CEO
SumGrowth, Inc.
The AlphaSheet
AlphaDroid
Alpha Daily Brief

We believe momentum detection is the key to profitable fund selection for both bull and bear market holdings. The challenge is to see past market noise to select momentum leaders. In unusual equity markets like we’ve experienced from 2021 through 2023, momentum signals can become degraded by market noise resulting from policy-induced reversals. TrendGuard can then become an important defensive tool that seeks to provide a performance floor when longer term momentum can’t get traction. Together with StormGuard, this approach provides what we call Dual Defense.

~ Scott Juds, Chairman and CEO SumGrowth, Inc.