Entries by Tim Norton

Improved Portfolio Optimizer, and Initial Results

I’ve been working hard on making the tools better, in particular on the optimizer, to make sure it produces great results. Keep in mind that studies that use historical returns can only be relied on so much. And we should never be using historical results to tweak the portfolio, because it leads to overfitting. If […]

Optimizing Some Popular Portfolios

In Forbes I found a post about some ‘expert’ model portfolios. I thought it would be interesting to try optimizing these portfolios using RIAengine smart portfolio optimizer, and seeing what backtests looked like. Here are the results. Buffet 90/10 Portfolio The first portfolio is simple, just 90% allocation to an S&P500 index fund (I chose […]

Machine Learning in Finance and Investing

The first time I heard the term ‘Artificial Intelligence’ was in the 1980s, when my dad worked for Digital Equipment Corporation, in the Silicon Valley of the East (Massachusetts). And yes they made computer chips from Silicon. In the 80’s Artificial Intelligence referred to, basically, complex logical structures, with each decision leading to a tree […]