Portfolio Design

Advanced concepts in stock investment portfolio design.  Fundamentals, technical analysis and many other related topics are discussed.

Setting Up An Optimizer Study

In the last post, the ranking system was prepared by eliminating the composite node. The number of nodes (8) was not a concern as it was less than 15, one of the optimizer's limitations. The ranking system now looks like this:

Start the Optimizer

Now click on Optimize to start up the ranking system optimizer.

A page called New Ranking System Study will be displayed where you can edit several parameters including the rebalance frequency, number of buckets, etc.  For this tutorial, the default settings will be used.  Click on Save. 

Set the Date Range

Click on the little plus sign button to edit the date periods. 

The default date range is one year.  We want to use the full data history. This can be done by editing the start date in the Current Date Periods, or clicking on the little calendar button shown below. 

Select Max followed by Add Period(s) as shown below.

 

The end date for the maximum date range isn't correct. Delete the extra dates and leave the correct date range. Click on update  as shown below.

The optimizer screen is shown below.  We are now ready to start generating permutations. 

In the next post I will introduce a special spreadsheet I created in order to assist in the generation of permutations. 

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