Investing with TuringTrader.com is designed to be straightforward, but your long-term success relies on adopting some important habits. We provide insights to help you navigate the intricacies of financial markets.
1. Stay on Schedule
Whether your portfolio rebalances monthly or daily, following the schedule is crucial. Skipping a rebalancing cycle can expose you to unnecessary risks. A portfolio that rebalances monthly might tolerate the occasional slip by a day. A portfolio that rebalances daily will certainly not. Most importantly, you should never wholly skip a rebalancing cycle.
After following a tight schedule, it might seem that it doesn't matter much when you alter it a little, but there is the risk of missing that one critical update. Once you deviate from the suggested schedule, our backtests are no longer applicable for reference.
TuringTrader.com can send you email notifications when your investments need your attention to make it easier to stay on schedule.
2. Stay the Course
You probably chose the data-driven approach to navigate the financial landscape without emotional biases. In finance, emotions can derail sound decision-making, which we aim to avoid. Investing is a marathon, not a sprint, and the portfolio you selected, aligns with your goals, factoring in risks, returns, and personal preferences.
During market fluctuations, it is paramount to stay the course. Our model portfolios are crafted to handle historical situations. Trust in the data-driven approach; resist the urge to second-guess asset allocation or pause investments. De-risking after a drawdown and opting for a less-risky strategy exposes you to the worst of both worlds: First, the substantial loss followed by the slower recovery. If you overestimated your tolerance for volatility, patiently await an opportune moment to make adjustments.
Remember the wisdom of John Maynard Keynes, "The markets can remain irrational longer than you can remain solvent." This unpredictability is precisely why we prefer technical analysis over discretionary trading, and we try not to second-guess our algorithms. Committing to this systematic approach provides a reliable anchor while navigating the ever-evolving markets. That is why we created TuringTrader.
3. Use Common Sense
Especially if you are new to TuringTrader.com, you might be tempted to take the asset allocations too literally. While it is true that you need to follow the asset allocations closely to achieve results that track our backtests, that does not mean that you should go overboard with this. Some brokerages charge a minimum fee of $1 per trade, making small orders less cost-effective. We provide more details about rebalancing considerations.
4. Set Realistic Goals
Expect achievable investment goals. TuringTrader's portfolios cater to a variety of different investment objectives, and our platform provides tools that help you find the optimal strategy for you. However, to set realistic expectations, it is crucial to understand your chosen portfolio's methodology, and how it behaves in volatile times. But it is also beneficial to learn what to expect from TuringTrader and why beating the market is a misleading perspective.
5. Stay Informed
Update your knowledge of market trends and economic indicators. TuringTrader's sophisticated indicator Market Vane provides excellent insight. This signal guides the fundamental risk-on vs. risk-off decision-making based on historical prices and macroeconomic indicators. Your dashboard conveniently shows the most relevant indicators and leads you to further information.
Explore our extensive help desk and our charts and metrics for detailed information. We provide comprehensive insights into how our portfolios behave in various market environments, helping you to make informed decisions.