FT Cloud offers three different portfolio modeling options. Static, Dynamic, and Momentum.
“Models” are instructions describing how to trade a portfolio. FT Cloud uses your instructions to create a change of $1,000 portfolio, and then calculate returns, correlations, risk, risk and return, charts, reports, and more.
Static Portfolio Modeling
FT Cloud’s static model is the most straightforward, very versatile portfolio modeling option. Access static models through the browser or in the FT Cloud desktop software.
A simple static portfolio model
A 50-50 split between a bond fund and and equity fund is an easy static model example. This portfolio will rebalance rebalanced every month back to a 50-50 allocation.
Static models can take any allocation breakdowns: 60/40, 25/25/50, 10/20/70
There’s no limit to the number of model positions and weightings are specified down to the 1/100th of a percent.
Dynamic Portfolio Modeling
FT Cloud’s dynamic portfolio modeling expands the static model, allowing for differnt portfolio weightings on differnt dates. You upload a simple allocation file, describing what portfolio on what dates, FT Cloud crunches the number and quickly returns a historic performance report.
Use FT Cloud’s static model to analyze historical performance of real portfolio, blended benchmarks that change over time, and many other applications.
Updating our simple static model
In the portfolio model above, the portfolio starts with a 50-50 weighting of SPY and TLT on 12/2010. FT Cloud rebalances the portfolio annually until 12/31/2020, then updates to a 30/30/40 allocation of SPY/ QQQ/ TLT in December 2020.
FT Cloud calculates the back history so you can analyze the model’s reports, data, and exact history of trading.
Momentum Portfolio Model
Finally, our last model is the FT Cloud Momentum model. This model is very different from the two others. FT Cloud’s momentum model does not allocate fixed portions of a portfolio to the same securities, but allocates to a constantly upgraded portfolio choses from an investment universe.
See our deep dive into momentum modeling here: FastTrack Momentum Model
Model Charting
Each portfolio model report page includes a dynamic chart, allowing rapid view changes, comparisons, and analysis over any time frame. FT Cloud includes all US mutual funds and ETFs (30k+ securities), all NYSE and NASDAQ listed stocks, and over 2k+ indexes, so there are no limits when comparing your portfolio to benchmarks, funds, or composites.
Portfolio Allocation
FT Cloud breaks down your portfolio across major segments investors care about.
- Sector
- Asset Class
- Country
- Region
- Bond Sector
- Positions
Use these portfolio allocation reports to better understand strengths, weaknesses, concentrations, and missing opportunities in your portfolio.
Model Reporting
FT Cloud’s reports include all data necessary to understand the risk, reward, and returns of your model portfolio. All reports include various time period return numbers, returns by year, risk, risk reward, and outperformance metrics.
Importantly, every report includes max drawdown values, lengths, and recovery metrics. Understanding your portfolio’s risk and reward has never been easier.
Model Blended Expense Ratio
FT Cloud offers a unique, true cost view of your portfolio using our Blended Expense Ratio calculation. Use our blended expense ratio to show the true cost of owning a portfolio based on the security’s SEC published expense ratios.