To create a new strategy, start by clicking on "Create New" and then selecting "Strategy" (1). If the user wishes to combine two or more strategies into a single pooled strategy, they should choose the "Pooled Strategy" option. This feature allows for the merging of multiple strategies into one, enabling more complex investment approaches by leveraging the strengths of various strategies in a unified structure. The pooled strategy tool is particularly useful for users looking to diversify or optimize their investment tactics by integrating different methodologies into a cohesive plan.
Enter a name for the strategy in the Name box (1). Be cautious when choosing the name, as the module allows multiple strategies to have the same name without warning. If you enter a name that already exists, you will not receive a notification, and you may end up with two strategies sharing the same name. To avoid confusion, it is recommended to use unique names for each strategy for easier identification and management.
Next, select the region (Canada or US) from the Region dropdown box (2). Please note that the current version of the strategy module does not support combining US and Canadian stocks into a single strategy. You must choose one region for each strategy, as cross-border blending is not available at this time.
Next, choose the Sector Classification from the dropdown menu (3). You can select either Morningstar or GICS classification. This choice is crucial if you plan to apply sector constraints in your strategy or use variables versus industry ratios. If these factors are not part of your strategy, the classification selection will not have any impact on the outcome.
Next, select the level at which you want your sector-industry relative ratio to be applied. You have the option to choose between Sector, Group, or Industry. If you choose Industry, the relative ratio will be calculated specifically at the industry level within the classification. This selection determines the granularity of the relative ratio computations and will impact how the strategy evaluates sector or industry performance based on the chosen classification.
The final step in the Basic Information section is to write a short description of the strategy in the Description Box (5). This text will appear on the fund fact sheet and should briefly describe the strategy's style, and the criteria used in the stock selection process. Providing a clear and concise description helps explain the approach to potential investors or stakeholders and can highlight key aspects of the strategy’s methodology. Click on continue (6) to go to Ranking, Buy & Sell Rules section.
Accessing the Strategy Module
Defining Ranking, Buy and Sell Rules
Advanced Configuration
Back-Testing the Strategy
Analyzing Back-Test Results
Sector Weights and Strategy Description
