FastTrack Model Portfolios: A Comprehensive Guide
Welcome to FastTrack's Model Portfolios, your ultimate tool for backtesting strategies, crafting detailed client reports, preparing presentations, and exploring a range of financial scenarios. Whether you're aiming to simulate market responses, build robust investment portfolios, or test the resilience of your strategies against historical events, our Model Portfolios are designed to support your needs with precision and flexibility.
Discover the Three Types of Model Portfolios
Static Model
Definition: The Static Model Portfolio offers a straightforward approach to portfolio management. Define your securities, allocate weights, and set a fixed rebalance schedule. This model is perfect for creating mock-ups of client portfolios, tracking specific investment models over time, and conducting stress tests on historical market events.
Example Configuration:
SPY : 50%
MDY : 25%
TLT : 35%
Rebalance every Month
This example demonstrates a balanced portfolio of stocks and bonds, rebalanced monthly to maintain the specified asset allocation.
Dynamic Model
Definition: Elevating the Static Model, the Dynamic Model Portfolio allows for the creation of multiple, sequential portfolios. Each can have its own set of securities and rebalance schedule, enabling you to stitch together a series of models based on specific dates. This flexibility is invaluable for simulating historical portfolios or benchmarks with pinpoint accuracy.
Example Journey:
Portfolio 1
Jan 1, 2010 - Dec 31, 2010
SPY : 50%
TLT : 50%
Rebalance Monthly
Portfolio 2
Jan 1, 2011 - Dec 31, 2011
IVV : 50%
BND : 50%
Rebalance Quarterly
Portfolio 3
Jan 1, 2012 - Dec 31, 2021
GS : 50%
BAC : 50%
Rebalance Monthly
This sequence illustrates how the Dynamic Model adapts over time, transitioning between portfolios to meet evolving investment strategies.
Momentum Model
Definition: The Momentum Model Portfolio adopts a trading strategy based on momentum, periodically adjusting positions within a defined universe of securities. FastTrack offers extensive customization options for defining "upgrade" criteria, allowing you to finely tune the model to your investment approach.
Key Feature: Tailor your strategy with our versatile upgrade options to navigate market dynamics effectively and optimize portfolio performance.