Inovestor continues to innovate in delivering investment solutions, and we are excited to introduce the Automatic Custom Strategy Tool. This new feature enhances our platform by allowing users to automate their personalized investment strategies with ease.
New Feature: Automatic Custom Strategy Tool
With this release, users can now automate their custom investment strategies, just like they could with model strategies.
How It Works
The feature is accessible through a the strategies tab in your portfolios. Users can use the scheduler function to pair their portfolio with a CPMS strategy to enable automation.
Transactions are executed at the user’s preferred frequency:
- Daily
- Monthly
- Quarterly
- Semi-annually
- Annually
Users can also trim positions at the same frequency for better portfolio rebalancing.
The portfolio will execute the necessary transactions suggested by the CPMS strategy while considering the holdings in the portfolio.
- The backtest settings will be followed, except for the trade and trim frequency, which will be determined by the scheduler function to allow for more flexibility, including daily execution. Additionally, the backtest starting amount is not used in this feature, as it is replaced by the portfolio value.
- This means that the number of stocks, sector allocation, number of held positions, and many other criteria will be respected, just as they would be in a backtest.
- The user will receive an email summarizing the transactions executed in the portfolio, similar to the emails sent for the strategies in the models section.
Investors who occasionally replace a purchased stock with another one from the qualified list can still use it:
- The transactions executed by this new function are treated like normal transactions within the portfolio. Consequently, a user can delete the purchased stock and manually enter another one from the qualifying list.
- Any stocks added to the portfolio that is on sell list will be sold each time the strategy runs, just as they would be in a backtest.
Unknown instruments, such as, ETFs and Mutual Funds, are ignored by the automation process. This means that a portfolio could have a Canadian CPMS strategy combined with Canadian/U.S ETFs/mutual funds and still work properly.
Final Words
This functionality significantly reduces the time and effort required for portfolio management. By automating custom strategies, users can ensure consistency in execution while benefiting from the efficiency of automated trading.
We believe this new tool will be a game-changer for investors looking to streamline their workflow while maintaining control over their unique investment approach.
As always, we welcome your feedback and encourage you to explore the new features. Let us know how we can continue improving your experience with Inovestor!
