Incantations
Welcome to the enchanting world of QuantMage! Here, we offer a plethora of building blocks, or as we like to call them, “incantations”, to craft your unique investment strategy. On top of the essential Ticker incantation, we have three distributor incantations: Weighted, Filtered, and Mixed, and three selector incantations: If/Else, Switch, and Enter/Exit. Let’s embark on this magical journey of asset allocation and market timing.
Ticker
Simple yet essential. Choose the stock ticker you have your eyes set on and make it a part of your spell. Dive deeper by discovering its historical data length, checking if it’s fractional, and exploring other tickers that move in sync with it. For the tech-savvy, we’re talking about tickers with the most positive (or negative) Pearson correlation strength. Make savvy moves with all the insights at your fingertips!
Weighted
Dabble in the art of asset allocation. Distribute your investments across various stocks or sub-incantations. Whether you prefer equal, custom, or inverse volatility weighting, we’ve got you covered. Remember, with inverse volatility, a steadier stock or sub-incantation gets a larger share. Curious about volatility? It’s the standard deviation of returns.
Filtered
Harness the power of selectivity. Invest in the top-performing or bottom-performing stocks (or sub-incantations) based on specific indicators. Post-filtering, you can fine-tune their allocation weights, just like in Weighted. It’s a strategic way to either ride the wave of momentum or seize opportunities during dips.
If/Else
Adapt and evolve your strategy with conditions. Combine multiple conditions to trigger the then segment only when all of them (or any of them) is satisifed. Compare an indicator against another, a fixed value, or even the current month to leverage seasonality. Choose between less than or greater than comparisons. The duration feature lets you decide how long a condition should persist, ensuring you get the most reliable signals.
Switch
An incantation that adapts based on the number of conditions met. For instance, with 2 conditions, you can have scenarios where both are met, only one is met, or neither. While you can define behaviors for each scenario, the incantation intelligently defaults to a lower-case behavior if one isn’t specified. Just ensure you set a behavior for the base case.
Enter/Exit
A close cousin of If/Else, this incantation lets you define distinct entry and exit conditions. Think of it as a magical toggling if, perfect for capturing the essence of a trend by using an exit signal different from the entry one.
Mixed
An incantation that dynamically balances between two assets based on an indicator’s readings. Within a specified range, it adjusts allocation seamlessly, offering a tailored approach to asset management. Outside this range, it’s like decisive If/Else, ensuring your strategy remains robust in the face of market fluctuations.
Step into the realm of QuantMage, where finance meets magic, and craft spells that resonate with your investment vision. Happy spell-casting! 🪄🌟