Technology

High Tech Meets High Touch

EdgeTech's proprietary computer algorithms provide detailed buy-and-sell recommendations to your Advisor, so that all of the criteria for when to buy, as well as when to sell, is available immediately.

Our advanced modeling tool makes trades based on relevant market pricing<br/><br />Read more about our models >>

Our software allows for unlimited portfolios to be build based on unique investment needs<br/><br />Read more about our portfolios >>

The EdgeTech Difference

The Other Side of the "Buy & Hold" Strategy*

By using an Active Management Strategy instead of a Buy and Hold Strategy, EdgeTech's technology monitors price trends to identify asset classes that are showing strength and then makes investment recommendations in these asset classes even if the recommended is in cash.

Having a disciplined systematic method of buying and selling may help clients capture profits and avoid major losses that are experienced by holding a position that continues to decline over a twelve month period or longer. Taking a small loss on a trade within 90 to 140 days, then moving to another more defensive or potentially more productive category/sector, is often better than waiting for your current position to heal and return to its original value.

Unlike other investment theories, the EdgeTech model seeks to make decisions based on what is working, not on what might be working, or has worked in the past.

Black Swans (random and unexpected deviations) sometimes occur among daily returns. For example, a $100 passive investment in the Dow Jones Industrial Average at the beginning of 1900 grows to $25,746 by the end of 20061, but:

Missing the 10 Best Trading Days...

Reduces terminal wealth (i.e., what an investment is worth at the end of its planned holding period) by 65% to $9,800.2

  • Missing the 20 best days reduces terminal wealth by 83% to $4,313.3
  • Missing the 100 best days reduces terminal wealth by 99.7% to just $83.4
VS

Avoiding the Worst 10 Days...

Boosts terminal wealth by 206% to $78.781.5

  • Avoiding the 20 worst trading days boosts terminal wealth by 532% to $162,588.6
  • Avoiding the 100 worst trading days boost terminal wealth by 43,397% to $11,198,734.7
Edgetech Difference Graph

On Average...

Across all 15 markets and over many decades...

  • Missing the 10, 20 and 100 best days reduced buy-and-hold terminal wealth by 51%, 71% and 98%, respectively.
  • Avoiding the 10, 20 and 100 worst days boosts terminal wealth by 150%, 373% and 26,532%, respectively.

By having a quantified process indicating when to sell, profits may be captured, losses may be minimized, and the chances of holding an equity through a "worst day" may be reduced.

*From the Dow Jones Industrial Average (Black Swans and Market TimingL How Not To Generate Alpha, by Javier Estrada, International Graduate School of Management, Barcelona, Spain)

*Past performance does not guarantee future results. The performance of an index (i.e. Dow Jones Industrial Average) does not reflect any fees and charges associated with individual investments or investment advisory accounts. It in not possible to invest directly in an index.

1 5.3% mean annual compound return
2 4.3% mean annual compound return
3 3.6% mean annual compound return
4 -0.2% mean annual compound return
5 6.4% mean annual compound return
6 7.2% mean annual compound return
7 11.5% mean annual compound return