How it works
3 simple steps to build Your customized portfolio
  • Customize an investment strategy
  • Analyze the performance of this strategy
  • Replicate and rebalance this strategy in your portfolio with one click
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Our Platform Features And Benefits
  • Inspired by academic research
  • Screen thousands of stocks by factors
  • Build a robust portfolio like professional portfolio managers
  • Save time
  • Remove emotional bias
Trading and Security
  • Trade thousands of stocks worldwide through our platform for free
  • Our broker is a member of SIPC, which cover accounts up to 500,000$ against bankruptcy
  • Build a robust portfolio like professional portfolio managers
  • Everything is encrypted
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FAQs
  • What is Quantitative Investing?

    Quantitative investing is a computer-based investment approach that uses mathematical models to screen and evaluate thousands of company stocks at the same time.

    The model looks at multiple financial or technical ratios, including risk levels, past performance, sectors, or even countries, to find the best companies.

  • What is Factor Investing?

    Factor investing is a quantitative investment approach that involves targeting quantifiable firm characteristics or “factors” that can explain stock performance.

  • How many factors are there?

    Academics have identified many different factors, but six equity factors outstand in terms of academic robustness:

    1. Volatility
    2. Value
    3. Size
    4. Momentum
    5. Investment
    6. Profitability
  • What is Volatility Factor?

    The volatility factor represents the relationship between the stock’s volatility and, it’s future performance. Through their academic research, Haugen & Heins (1972) found that in the long term, a portfolio of low volatility stocks is better in terms of risk adjusted-return than a portfolio of high volatility ones. We can identify low volatile stocks by their 1-year volatility.

  • What is the Value Factor?

    The value factor represents the relationship between the company’s relative valuation, and it’s future performance. Through their academic research, Fama & French (1992) found that in the long term, a portfolio of relatively cheap companies is consistently outperforming a portfolio of relatively expensive ones. We can identify the cheapness of a company by a lower price to book ratio.

  • What is Size Factor?

    The size factor represents the relationship between the size of a company and its future performance. Through their academic research, Fama & French (1992) found that in the long term, a portfolio of smaller size companies is consistently outperforming a portfolio of larger size ones. We can identify small size stocks by their market capitalization.

  • What is the Momentum Factor?

    The momentum factor represents the relationship between the stock's past and future performances. Through their academic research, Jagadeesh & Titman (1993) found that in the long term, a portfolio of previous winners is consistently outperforming a portfolio of past losers. We can identify winners by calculating their past 12 month's performance and omitting the last month.

  • What is the Investment Factor?

    The investment factor represents the relationship between the company’s assets growth, and it’s future performance. Through their academic research, Sheridan & Wei (2004) found that in the long term, a portfolio of companies with lower asset growth is consistently outperforming a portfolio of companies with higher assets growth. We can identify lower investment companies by their 1-year asset growth.

  • What is the Profitability Factor?

    The profitability factor represents the relationship between the company’s profitability, and it’s future performance. Through his academic research, Robert Novy-Marx (2013) found that in the long term, a portfolio of companies with higher profitability is consistently outperforming a portfolio of companies with lower profitability. We can identify highly profitable companies by their gross profit to assets ratio.

  • Which factor is best?

    Academic research has shown that the six equity factors above all have the potential to outperform the broad market over the long term, Still, they may all have periods of short-term underperformance as well. That’s why diversifying factor exposures is the best solution for long term investors.

  • Why factors exist?

    The Factor exists due to three common reasons:

    1. Risk premium: Compensation for additional risks versus the broad market that is, for an undesirable return pattern.
    2. Behavioral psychology: Markets are inefficient due to behavioral characteristics of investors, for example:
      1. Anchoring
      2. Action bias
      3. Loss Aversion
    3. Market structure: Markets can be ineffective due to restrictions and limitations, for example, short selling or the use of leverage.
  • How can I benefit from Factor Investing?

    As an investor, you can use factor investing in your portfolio either to reduce your portfolio risk by generating returns above the market or improve your portfolio diversification.