Financial advisors and investors use a variety of algorithmic trading strategies to reap returns for their clients. Different strategies are used depending on the goals of the client and what the financial advisor wants to achieve. Some of these strategies produce long-term results while others provide short-term results. However, all of these strategies have commonalities. One being that they can all be reduced to a set of rules and the other being that they are almost always based on hard data, not forecasts or opinions.
Before we get too ahead of ourselves, we are going to take a step back and cover the basics of algorithmic trading strategies. The term algorithmic trading refers to any trading activity that is carried out with the help of a programmed computer system. There are a number of approaches to trading and investing that advisors can take, and algorithmic trading strategies help them to accomplish the goals of their clients. Have questions about algorithmic trading strategies and how you can reap high returns for your clients? Contact us at AlphaDroid today, we’re happy to answer any of your questions.
What Is The ETF Rotation Strategy?
Now that we have covered the basics, let’s jump into one of the strategies used by advisors and investors. The exchange-traded fund (ETF) rotation strategy is used to optimize return for a certain level of risk. An ETF is essentially a basket of securities that trade on an exchange, much like stocks. The share prices of ETFs consistently change all day as they are bought and sold. They can contain all kinds of investments including, but not limited to, stocks, commodities, or bonds. If you have additional questions about ETF or want to try our award-winning investment algorithms, contact us today!
How Is ETF Used?
There are several ways investors can use an ETF to take full advantage of patterns and trends uncovered by quantitative research, in addition to the low fees charged by ETFs. They generally focus on specific industry sectors and offer financial investors a straightforward way to participate in the rotation of an industry sector. What does this mean? Simply put, sector rotation leverages economic cycles by investing in the sectors that are rising and avoids the ones that are declining. This strategy allows investors a great way to enhance the performance of their client’s portfolio while increasing diversification. If you’re a financial advisor or investor looking to elevate your client’s portfolio, try our award-winning investment algorithms! Give us a call today to learn more or start your 30-day free trial.
Why You Should Use AlphaDroid
AlphaDroid has found a solution to level the playing field with Wall Street. Our award-winning investment algorithms equip advisors and investors with the tools to reap benefits for their portfolios by predicting market trends. How does this work? Our trading strategies consist of a selection of up to 12 ticker symbols with a few trading rules, crash protection options, and performance testing options.
Unlike other investment approaches, we at AlphaDroid make decisions on what is happening in real-time, not based on cycles, patterns, correlations, or opinions. We believe it is only by owning the trend leader and avoiding the laggards that one can improve results and reduce risk at the same time. For additional details on our financial planning software for financial advisors and investors, visit our website. If you are interested in discovering the power of our award-winning software, you can start your 30-day free trial today! Should you have any additional questions or want more information, feel free to give us a call. We are happy to help!