_wgnp
Joined 14 years ago
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Jan 16
Recent submissions
Comment · 9 years ago
I'm not sure where everyone got the idea that I was advocating for high-risk active trading. I proposed using these services for "things like [Betterment]" and posted a link to a Markowitz minimum-variance portfolio rebalancing algorithm based on low cost sector ETFs. There's nothing crazy going on here.
Comment · 9 years ago
I never proposed anything wildly different to what Wealthfront and Betterment do, the one example algorithm I gave is essentially buy and hold with rebalancing just like Betterment/Wealthfront, just using a different portfolio optimization strategy than they do.
I never advocated for active trading.
Comment · 9 years ago
Totally agree. I was aiming more for those who just want to rebalance their portfolios every month or something like that, though I acknowledge that the services I linked to do have communities interested in active trading.
Comment · 9 years ago
Since this is a community of programmers, you might be interested in doings things like this yourself instead. There are a couple of options:
- Quantopian (http://quantopian.com/): Python based, kinda a little bit open source (backtesting only), live trades on Interactive Brokers or Robinhood. Has a big community for stocks.
- QuantConnect (http://quantconnect.com/): .NET based, more open source (includes live trading), live trades on Interactive Brokers, has a similarly sized community but the community's attention is spread to other asset types like Forex as well.
Both have numerous example algorithms you can clone and run without much trouble. An example vaguely suited to investing: https://www.quantopian.com/posts/modern-portfolio-theory-min...
Comment · 9 years ago
Betterment maintains a more diversified portfolio and optimizes it for a few things like downside risk, explained here: https://www.betterment.com/resources/investment-strategy/por...
Comment · 9 years ago
> If you moved your money to Vanguard and invested in the same funds Betterment currently invests in for you, and you rebalanced as often as necessary, you would get a slightly higher ROI at Vanguard because Vanguard has lower fees.
Just felt like pointing out that you'd have to rebalance the same way Betterment does, which isn't the way I believe normal people do it. Betterment uses portfolio optimization techniques that can be hard to implement yourself: https://www.betterment.com/resources/investment-strategy/por...