Meridian Strategic Asset Management

A Registered CTA Specializing In Risk Management Through Alternative Investments
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Development of the Meridian Risk Management Portfolios 
 

Phase seven of our research and development effort was to leverage the extended capabilities of our proprietary portfolio analysis tool (developed in phase six) to build portfolios of markets being traded with the Meridian Trade Selection Method.  Our goal was to find markets, diversified across multiple sectors, which interact synergistically.  Specifically, we looked for markets which showed a tendency to alternate in their periods of strong performance.  So, while one market’s performance dips another market within the same portfolio would tend to show an increase in performance, and vise-versa.  This was one of several strategies employed to decrease overall volatility within the Meridian Risk Management Portfolios. 

PortfolioBuilder provides two tools which facilitated this effort.  First, PortfolioBuilder allows us to examine individual markets on a day-by-day basis.  Second, PortfolioBuilder allows us to aggregate these day-bay-day individual market results into comprehensive portfolios so that we may examine how individual markets interact.  The ultimate results of this effort are shown in our performance results.

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 


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All Material is Copyright Protected by Madison, Monroe, & Whitaker Investment Services, LLC © 2005

 

 - Information contained herein is the opinion of its writer and may change at anytime.
 - Futures and commodity trading involves substantial risk and may not be suitable for all investors.
 - Information obtained from external sources is believed to be reliable but are in no way guaranteed.
 - Past performance is not indicative of future results.

The CFTC requires that the following statement be made:

NOTICE: "HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.