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QuantMage Library

Crafting Your First Spell - A Beginner's Guide!

Hey there, budding quant wizard! 🎩✨ Feeling a tad overwhelmed by the Grimoire? No worries, we’ve all been there. Let’s break the ice with a classic: the 60/40 portfolio. By the end of this guide, you’ll be casting spells like a pro!

🚀 Quick Note: We’re stoked to dive into these strategies with you! But remember, this is just a fun exploration. It’s not financial advice or a call to action on any stocks. Always do your homework and maybe even chat with a financial guru before making big moves. Alright, let’s roll!

  1. First things first, let’s name our spell. Something like this:
  2. The 60/40 portfolio is all about striking a balance: 60% stocks for growth and 40% bonds for stability. For this, the Weighted incantation is your best buddy. Click on the + icon to add it.
  3. For stocks, we’ll go with VTI (Vanguard Total Stock Market ETF) and for bonds, VGIT (Vanguard Intermediate-Term Treasury ETF). Add these two Tickers under the Weighted incantation. Tip: Just start typing the ticker symbol, and our nifty auto-complete will do the rest.
  4. We’re aiming for a specific mix here, so switch the weighting from Equal to Custom.
  5. Time to set our percentages! Punch in 60% for VTI and 40% for VGIT. Just a heads up, make sure the total adds up to a neat 100%.
  6. Set When To Trade to Yearly. This chill portfolio doesn’t need constant check-ins.
  7. Feeling good? Hit that Save button up top.
  8. Notice the Backtest’s Run button is now ready to roll? Give it a click.
  9. Voilà! A snazzy graph showcasing your spell’s journey over time. You can even stack it up against our default benchmark ticker, SPY.
  10. Dive deeper into the numbers with the Stats tab: Notice how it might have a lower annual return than SPY, but with its smoother ride (lower drawdown), its performance metrics like Sharpe, Sortino, and MAR ratios are actually shining brighter.
  11. For the curious souls, the Allocation History tab lets you peek into its daily allocations:
  12. And… that’s a wrap! You’ve just conjured your very first QuantMage spell! 🎉 Check out the finished masterpiece here. And hey, don’t forget to play around with the cool tools on the top bar.

Prefer a more hands-on experience? Dive right into the interactive version of this tutorial. It’s a great way to explore the ins and outs of Grimoire in a dynamic, user-friendly format. Give it a whirl and see how fun and engaging crafting your investment strategy can be!

Happy spell-casting and may your investments always find their magic!