Evaluating Designer Models

Designer Models are actionable stock and/or ETF investing strategies created by experienced Portfolio123 users and made available to the public on a [aid subscription basis. Although designers provide descriptions of their strategies, the secret sauce is their intellectual property and is therefore not typically disclosed.

That poses a challenge to prospective subscribers: How can the merits of a Designer Model be evaluated? Investors in mutual funds and the contemporary breed of strategically-oriented ETFs face the same challenge. And both must cope with the reality that past performance (which we can actually see) does not determine future outcomes.

We believe the best way to evaluate such strategies is by understanding the strategy itself, as we analyze it using, as inputs, the actual portfolios, and assessing the appropriateness of the approach as we determine it to be and recognizing the reward-risk characteristics of such approaches, with a view toward matching them with one’s own goals and preferences.

The content here comes from a virtual Designer Model evaluation course create by Marc Gerstein for the Portfolio123 community:

Choosing Designer Models