PPG (Participate, Protect and Grow) investing uses a dynamic risk management process to increase or reduce risk exposure in an investment portfolio. Unlike static buy-and-hold models, the PPG process dynamically changes an investor's risk exposure by changing their exposure to equity in the portfolio. In periods of rising markets, equity exposure is increased. In periods of market decline, equity exposure is reduced.
When equity exposure is reduced, exposure to cash or cash alternatives is increased. Unlike most buy-and-hold models, cash is used in lieu of other fixed income alternatives that are subject to market risk. This dynamic process reduces the investor's overall downside volatility. It preserves capital while markets are dropping and maximizes upside volatility exposure in positive market cycles.
Using the Virtual Portfolio Manager, you are able to build customized PPG strategies of your own. VPM's portfolio wizard will walk you step-by-step through the process of creating a dynamically managed PPG strategy.
You select the positions you wish to use, and VPM will tell you when and how much to buy or sell of each position. VPM will even back-test your portfolio to show you how your strategy would have performed in prior years.
Should you wish to deploy a PPG strategy immediately, there are a number of pre-built, ‘out of the box' strategies available.
VPM has been available to advisors since 1998, however, it has the capability to back-test your investment strategies as far back as 1980. Because the mechanical trading algorithms have been unchanged since their release, the numbers you see from VPM are "real". These are actual recommendations that have occurred historically with the system.
They are actual recommendations that have occured historically with the system.
To learn more about this process, click here for a free 30-day trial of VPM!