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

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