The 3Sig
a Simple Investment Strategy
Daniel Mocan
EM @ Fortech
Meetup organizer @ JSHeroes
Twitter: @danielsmocan
Financial Education Enthusiast
(A GlobalLogic Company)
(A Hitachi Group Company)
Why use an investment strategy?
Investment Recomandations
Stress Level
Competency
Time
Easy to Follow *
You should know before go forward
What is a stock
What is a bond
What is an ETF
About Commisions
What Do You Need For This Strategy
A decent amount of money to start
A broker
Stocks ETF
Bonds ETF *
Discipline
Simple view of 3Sig
Start with assets split 80/20
Each 3 months check the Stocks ETF performance
Trade based on the performace
Check the portfolio allocations
Rebalance based on the allocations
Simple view of 3Sig
Start with assets split 80/20
Each 3 months check the Stocks ETF performance
Trade based on the performace
Check the portfolio allocations
Rebalance based on the allocations
New Funds
more then +3% - sell
less then +3% - buy
3Sig Example
Initial amount: $10 000
$8000 in Stocks ETF (80%)
$2000 in Bonds ETF (20%)
Starting Point
Stocks ETF values: $8 080 (1% growth)
Target $8240 (+3%)
$8 240 - $8080 = $160 Stocks ETF to Buy
After 3 months
$8 240 in Stocks ETF (81.75%)
$1 840 in Bonds ETF (18.25%)
3Sig Example
Stocks ETF values: $8 490 (3% growth)
Target $8 490 (+3%)
No need to do any trading
After 6 months
$8 490 in Stocks ETF (82.18%)
$1 840 in Bonds ETF (17.82%)
Stocks ETF values: $8 910 (5% growth)
Target $8 740 (+3%)
$8 910 - $8 740 = $170 Stocks ETF to Sell
After 9 months
$8 740 in Stocks ETF (81.31%)
$2 010 in Bonds ETF (18.69%)
3Sig In Extreme Market
another account for funds
Stay in place
Market drop of over 30%
ignore the next 4 sell triggers
in the next 2 years
Summary
Why choose an investment strategy
Requirements
How to apply it
Handle extreme conditions
Others
Raffle
Feedback
Mulțumesc
The 3% Signal
By Daniel Mocan
The 3% Signal
Fortech Internal Presentation
