EVO An Evolutionary Money Management System Potomac Advisors Inc. - - PowerPoint PPT Presentation
Introducing EVO An Evolutionary Money Management System Potomac Advisors Inc. Presented by Rich Paul 1 H e l l o ! 2 Todays Agenda W h o I a m , W h a t I d o & H o w I d o i t 1 30-years of registered, investment advisory
Potomac Advisors Inc.
Presented by Rich Paul
Introducing
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GIPS compliant, and GIPS and Theta Research verified track record.
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W h o I a m , W h a t I d o & H o w I d o i t M y p e r f o r m a n c e
H e l l o !
30-years of registered, investment advisory experience.
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18.55%
3 yr
E V O 1 H i s t o r i c a l P e r f o r m a n c e :
$1000M
7 yr
15.32%
P e r f o r m a n c e c a l c u l a t i o n s f r o m J u n e 1 , 2 0 0 2 t h r o u g h J u l y 3 1 s t , 2 0 1 6 . ( N e t : i n c l u d e s 2 . 7 5 % m a n a g e m e n t f e e )
$1000M
10 yr
15.29%
Inception
14.08% C a r e e r H i g h l i g h t s :
measurement standards while serving as Chairman of the committee.
Most… In the Real World.”
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E V O : A N E V O L U T I O N A R Y M O N E Y M A N A G E M E N T S Y S T E M
A B O U T U S
ev·o·lu·tion-ary (ĕv′ə-lo͞o′shə-nĕr′ē): A gradual process in which something changes into a different and usually more complex or better form.
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T H E K E Y T O E V O ’ S S T R A T E G Y
A B O U T U S
“Academic research indicates that when multiple trading systems are aggregated the noise and errors will tend to diversify away, while the signal remains, and is stronger.”
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Select from a Universe of 120+ Individual Trading Systems
A B O U T E V O 6
Creates Thousands of Combinations Validated Combinations are included in a Single EVO Composite New Combinations Continually Evaluated for Inclusion EVO is a mechanical system, by which all signals are generated based on algorithmic rules using technical
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E V O ’ S S Y S T E M P R O F I L E
A B O U T E V O
current model)
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=
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VS
T H E O R I G I N A L E V O 1
M A X D A I L Y D R A W D O W N U L C E R I N D E X A N N U A L I Z E D R A T E O F R E T U R N
A B O U T E V O
By using forward-testing, we can see how the original 8 system would have performed if never changed.
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As EVO evolved from 8 to 18 systems, we see performance improve with little change to risk & volatility.
A c t u a l R e s u l t s F o r w a r d - t e s t e d
A l l r e s u l t s a r e n e t o f a 2 . 7 5 f e e .
Metric EVO1 S&P 500
% of Time Invested Long 51.1% 100% % of Time Invested Short 0.4% N/A # Winning Trades 90 N/A # Losing Trades 57 N/A % of Winning Trades 61% N/A Average Gain of Winning Trades 4.06% N/A Average Loss of of Losing Trades
N/A Ratio Avg. Winning Trade to Avg. Losing Trade 1.73 N/A
P E R F O R M A N C E
1 0 J u n e 1 , 2 0 0 2 t h r o u g h J u l y 3 1 , 2 0 1 6 . ( N e t o f a 2 . 7 5 f e e )
P E R F O R M A N C E
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Year EVO1 S&P500 + / -
YTD 8.59% 7.66% +0.93% 2015 9.12% 1.38% +7.74% 2014 20.25% 13.69% +6.56% 2013 46.79% 32.39% +14.40% 2012 21.39% 16.00% +5.39% 2011 2.38% 2.11% +0.27% 2010
15.06%
2009 16.79% 26.46%
2008 16.61%
+53.61% 2007 15.93% 5.49% +10.44% 2006 12.44% 15.79%
2005
4.91%
2004 15.86% 10.88% +4.98% 2003 31.81% 28.68% +3.13% 2002*
14.76%
Calendar Year Returns (* = partial year)
Metric EVO1 S&P 500
Annualized Rate of Return 14.08% 7.31% Cumulative Return 547% 172% Standard Deviation (mo.) 4.14% 4.20% Loss Standard Deviation (mo.) 2.78% 3.71% Sortino Ratio RF (Citi 3 mo. TB) 1.66 0.67 Sharpe Ratio 0.90 0.42 Maximum Drawdown
Up Capture vs. Market 82.1% 100% Down Capture vs. Market 40.2% 100% Alpha Vs. Market 10.5% 0% Beta vs. Market 0.39 1.00 R-Squared vs. Market 0.15 1.00
Summary Statistics
J u n e 1 , 2 0 0 2 t h r o u g h J u l y 3 1 , 2 0 1 6 . ( N e t o f a 2 . 7 5 f e e )
Y O U R M O N E Y 1 2 A l l r e s u l t s a r e n e t o f a 2 . 7 5 f e e .
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R E A L - T I M E P E R F O R M A N C E ; S T E L L A R R E S U L T S
P E R F O R M A N C E
mutual fund, ETF, and all but one index (on a gross of fees basis)
results
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All results are actual. No hypotheticals
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The only strategy ranked in the top four in performance in all seven time periods from
Research through July 2016 after applying a 2.5% advisory fee. Ranking Highlights:
for all time periods from three to 10 years. (Theta’s Ulcers Performance Index)
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R e a l - t i m e
Superior performance, beats on risk and return.
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S t e l l a r
EVO went live May 31, 2002, over 14 years ago.
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H i s t o r y
GIPS verified track record through June
verification.
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V e r i f i e d C o n s i s t e n c y
C L O S I N G T H O U G H T S
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The EVO Strategy is offered through
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EVO composite performance is based on actual accounts and comprises all accounts in the composite. Composite returns are time-weighted total returns that reflect the reinvestment of dividends and capital gain distributions. Composite returns are net of the underlying mutual fund management fees and other fund (administrative) expenses. No redemption
adjustment for fees has been made, neither for income taxes. Performance for other composites in other investment programs offered may differ materially (more or less) from the performance of this composite. The volatility of the market indices may materially differ (more or less) from that of this composite. Benchmark returns such as the S&P 500 are total returns and reflect the reinvestment of dividends. It should not be assumed that future recommendations will be profitable
shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower
sell or a solicitation of an offer to buy any security. Such offers can only be made where lawful under applicable law. This presentation is for use by investment professionals only. It is not intended to be distributed to the public and such use is prohibited. It is intended to demonstrate to advisers the performance of the manager, not the actual performance after fees which may different for licensees of the EVO system.
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