South Bay Financial Advisor / Investment Strategy

With the advent of sophisticated and powerful computers, some money managers have put new technology to work for them with the purpose of studying indicators that have worked in past market conditions. RWA, Inc is one of these firms. We gather data related to over 8,000 potential investments on a daily basis. This data is analyzed to identify specific investments that meet allocation, technical, timelines, and fundamental requirements. What our studies have found, is that certain patterns exist in financial market history that would dictate opportunity for investment gains and losses. With this data we quantitatively select our portfolios. In other words we’ve written computer code to analyze the stock market and select only those that meet very strict guidelines. These codes are the investment “Formula s” that makes up our portfolios- hence the name “Formula Folios”. Our strategies /portfolios are strictly controlled by computer algorithms and decisions are influenced 70% by automated fundamental analysis and 30% by automated technical analysis. Additionally, our allocation models have been optimized using nearly 60years of daily historical performance and volatility data to create the maximum risk/return ratio (affectionately called Alpha or share by academia). Warren Buffett, one of the wealthiest individuals in the US, uses the same type of quantitative investment models. "Click Here" to find out

The FormulaFolio Investment Strategies have 3 (three) basic components: 

1. Market Direction Formulas

2. Investment Selection Formulas

3. Computer Optimized Asset Allocation Formulas