Our Investment Models

Protection Point Advisors, Inc. Portfolios

As part of our L.I.M. Process (Layered Investment Management), we believe in setting up multiple ways of protecting portfolios, like investment fuses. We have built Protection Point Advisors, Inc. portfolios to make allocation easier. However, if you have a particularly small or large client, or a special circumstance, please call 877-834-1850 to get help in selecting from one of these or our larger list of combinations to better fit your situation.

Protection Point Advisors, Inc. Income

50% APM model, 50% Dividend model with or without Structured income

Protection Point Advisors, Inc. Conservative

25% APM model, 25% Dividend model, 50% Core Bond

Protection Point Advisors, Inc. Moderate

40% Blend, 40% Core Satellite 75/25, 20% Core Bond

Protection Point Advisors, Inc. Growth

33% PPA Growth, 33% Merlyn, 34% Core Equity

  1. They are less expensive because we don’t pay another institution to trade the portfolios and we control the building blocks to keep cost down.
  2. Each model has a defined and unique strategy to defend against downside markets. Models are not static; they respond to market environments.
  3. Because we build and maintain these models, we can better explain changes that occur and our reasoning behind these recommendations, discussed each week in our Learn, Lead and Scale web meetings.

Social Responsible, Value-Based ESG Options

Components:

APM (Advance and Protect) Model

Riskalyze Score: 26-32

This model is based on a momentum strategy with no specific asset allocation strategy. It can be any mix of stock, commodities, managed futures, and cash, but limits exposure to any one sub asset class to 20%. It looks to limit market downturns to about 5% each year (although not guaranteed) and does this by using a three-part decision process (statistical momentum, chart review and institutional bias) which evaluates each position within the portfolio each week. Should two of these measures agree, the position might be replaced by another position or moved to cash. This active model can be nimble.

EWG Growth Model

Riskalyze Score: 40-50

This model is based on a momentum strategy with no specific asset allocation. It can be any mix of stock, commodities, managed futures, and cash. It has no asset class exposure limit and seeks to take advantage of momentum software by using more volatile positions. It looks to limit market downturns to about 10% in a given year (although not guaranteed) and does this by using a three-part decision process (statistical momentum, chart review and institutional bias) which evaluates each position within the portfolio each week. Should two of these measures agree, the position might be replaced by another position or moved to cash. Because it is reviewed on a weekly basis, this active model can be nimble by moving out of markets when things look ugly, and moving into markets when the future looks promising.

Stable Growth

Riskalyze Score: 15-26

This model was designed to provide low annual returns with low to moderate volatility. It seeks to earn a steady 2-5% each year by using conservative positions, minimized trading, and broad diversification. Each quarter, each position is reviewed for momentum and adjusted as necessary. Typical holdings might be real estate, bonds, hedge funds & managed futures.

EWG Dividend

Riskalyze Score 34-45

The goal is a consistent 5-6% yield. It’s a rather defensive model, and the minimum yield for each position it holds is just 3%. Uniquely, the model could be made up of any combination of mutual funds, real estate, ETFs, or individual stocks. This portfolio is not particularly tactical, meaning it usually holds positions for a longer amount of time in order to capture those dividend yields. This model will generally remain invested unless suitable replacement positions don’t exist.

STAR 25/75

Riskalyze Score: 34-45

This model is allocated based on a computer calculated algorithm to rank momentum of stock sectors/style boxes each quarter.  A diversified portfolio is built from the positions ranked at or better than the average momentum for the last quarter.  In an up market determined by a proprietary algorithm, the maximum allocation to stock funds is 75%.  If the algorithm determines that the market has weak momentum, then the maximum allocation to stocks is 25% and the excess is allocated to bond or cash funds based on a similar ranking to stocks.

STAR 30/90

Riskalyze Score: 39-50

This model is similar to STAR 25/75, but can increase allocation to stock funds in order to produce a higher return.  In an up market determined by a proprietary algorithm, the maximum allocation to stock funds is 90%.  If the algorithm determines that the market has weak momentum, then the maximum allocation to stocks is 30% and the excess is allocated to bond or cash funds based on a similar ranking to stocks.

Blend

Riskalyze Score: 32-50

Blend is a combination of 3 momentum strategies. 20% short term (weeks), 40% mid-term (months), and 40% long term momentum (quarters). The strategy was built in response to a desire to have something that was less reactive than APM with perhaps a little more risk and return. Because of its build, it generally moves out of and into markets slowly, one layer at a time. Blend can result in more trades, because of its multiple layers.

AlphaDPM

Riskalyze Score: 29-36

This is a monthly reviewed focused momentum model of ETFs.  The model maintains 4 positions: top monthly momentum in countries, sectors of the S&P, sectors of the I-Shares funds, and a “global mix” basket of funds.  The model uses Stormguard to determine if market risk is too high and rotates to defensive positions in an attempt to protect against market loss.  Stormguard uses price trend, market sentiment, and position momentum charts to determine if protection should be triggered.

Merlyn A.I.

Riskalyze Score: 29-45

This model is rather aggressive and is driven by artificial intelligence (AI). It is heavily skewed towards one index (like the S&P 500, Dow Jones Industrial Average, Nasdaq etc.) at a 45% allocation. Other exposures include a 25% global exposure, 15% style box (large/small cap and value/growth) and a 15% factor-based rotation. The factor-based rotation section rotates exposures to macroeconomic factors such as inflation, GDP growth, and unemployment rates as well as microeconomic factors such as a company’s credit/liquidity, stock price volatility, and momentum. This complex model actively measures if market risk is too high and rotates to defensive positions in attempt to protect against market loss. Our process uses price trend, market sentiment, and position momentum charts to determine if protection should be triggered.

Core/Satellite

Riskalyze Score: 19-55

This model combines 2/3 of a static core stock position to 1/3 sector monthly rotation and movement to cash with a core bond exposure. The sector rotation portion also uses active measures to determine if market risk is too high and rotates to defensive positions attempting to protect against market loss. The variance in Riskalyze score is due to this rotation 1/3 that can entirely move from stocks to cash and vice versa.

Core Bond

Riskalyze Score: 7

This is a static diversified bond model, made up of several strategic bond ETFs and one fund. Allocations and positions get reviewed on a quarterly basis, with little expectation of selection changes. This model targets a steady return of about 5% with little variation.

Core Equity

Riskalyze Score: 78

This is a static diversified stock model, made up of low-cost ETFs. Allocations and positions in this model are reviewed on a quarterly basis, with little expectation of selection changes. This model targets a total return consistent with the broad equity market.

SSR (Single Sector Rotation)

Riskalyze Score: 54-70

This model is an aggressive Artificial Intelligence (AI) run model similar to AlphaDPM, but focuses on just one position at a time instead of 4. This is a monthly reviewed momentum focused model made up of ETFs . The model maintains one of the following positions: the top monthly momentum in countries, sectors of the S&P 500, sectors of the I-Shared funds, and aggressive mix of ETFs, or a “global mix” basket of funds. This complex model uses Stormguard as well to determine if market risk is too high and rotates to defensive positions in an attempt to protect against market loss. Stormguard uses price trend, market sentiment, and position momentum charts to determine if protection should be triggered.

 

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Advisory services offered through EWG Elevate, Inc. dba Protection Point Advisors.

This represents a partial list of clients. They have not been compensated and were not selected based on duration, performance, account size.