Demonstrating our commitment to transparency, we describe exactly what we do, rules and all, to make our process more transparent and more easily explained. We intend for this to be used as an educational tool for clients, instilling discipline during emotionally charged environments, and enabling the full benefits of systematic investing.
Each month we share an update about what asset allocation updates our process is prescribing.
“If individuals are rational, there is no need to protect them against their own choices.”
– Daniel Kahneman
Our process is designed to reduce exposure when prices fall, and increase exposure when prices rise. Simple, but robust. This preserves compounding, and allows the portfolio to perpetually work from a higher base position.
It all starts with the Exponential Moving Average Formula:
EMA = (current price * 2/(1+N)) + (Previous Day’s EMA * (1-2/(1+N))
N = # of days or period you are analyzing.
To hear the rest: click here
We monitor 4 trends:
We trade 8 asset classes:
Foreign Developed Equities
Emerging Market Equities
U.S. Treasury Bonds
International Treasury Bonds
System 1 (Intermediate-term Trend) – If 10 Day EMA is above the 100 Day EMA at month-end it represents an “up trend” and we increase exposure. If the 10 Day EMA is below the 100 Day EMA that represents a “down trend” and we re-allocate to an asset class (within our 8) that is trending upward. (We will work with you to build rules on how this re-allocation process waterfalls.)
System 2 (Long-term Trend) – If the 50 Day EMA is above the 200 Day EMA at month-end this represents an “up trend,” and we buy; if it is below, a “down trend,” and we re-allocate (based on pre-established customized rules) to an asset class trending upward.
System 3 (Strategic) – We build a diversified portfolio across our 8 asset classes with individualized rules governing risk, re-balancing, and re-allocation.
That’s it, that’s what we do. We of course blend all three systems together and customize the rules related to re-balancing and re-allocating, but there is no black box.
By clicking the “I Agree” button below, I am acknowledging that I understand and agree that no graph, formula or device can be used solely to make securities selections or decisions for investors and that Blueprint does not rely exclusively on such a graph, formula or device in making its investment decisions.
I understand that all graphs, formulas and devices are subject to many limitations and difficulties.
I understand that neither this website nor any of its content is offered as investment advice and should not be deemed as investment advice or a recommendation to purchase or sell any specific security.
I understand that the information contained herein reflects the opinions and projections of Blueprint Investment Partners LLC (“Blueprint”) as of the date hereof, which are subject to change without notice at any time, and that Blueprint does not represent that any opinion or projection will be realized. Neither Blueprint nor any of its advisers, officers, directors, or affiliates represents that the information presented on this Website is accurate, current or complete, and such information is subject to change without notice. I understand that any performance information must be considered in conjunction with applicable disclosures, and that past performance is not a guarantee of future results.