What Makes ITA Wealth Management Different From Other Investment Blogs?

What are the attractions and unique features of ITA Wealth Management?  Why should anyone consider taking out a Platinum membership?  Listed below are a few reasons for following this blog.

  1. Working portfolios are tracked at ITA Wealth Management.  Platinum members have access to the asset allocation plans and individual stock and ETF transactions for eight portfolios.
  2. Access to the TLH Spreadsheet with audio/video help sessions as to how to use this spreadsheet for accurately tracking a portfolio.
  3. Within the TLH Spreadsheet is a method for building a customized benchmark for every portfolio.
  4. The ability to calculate the Sortino and Retirement ratios are available within the TLH Spreadsheet.
  5. Portfolio analysis is available for the asking.
  6. Quantext Portfolio Planning (QPP) is used to come up with probability projections for portfolio return and projected risk or uncertainty measurements.
  7. Correlations are shown for different portfolios.
  8. Technical analysis is used with a few selected portfolios.  Readers can track whether or not these Tactical Asset Allocation (TAA) methods work.
  9. The "Delta Factor" is another probability argument used to determine when there are favorable times to sell or purchase different stocks or ETFs.
  10. From time to time, stocks screens are presented for readers to examine.
  11. Example asset allocation plans are frequently presented.

Exponential Moving Average Review

The term Exponential Moving Average (EMA) showed up in a number of recent posts.  Those unfamiliar with this term would benefit with a review.  In searching the blog, I thought I defined EMA, but that post was likely lost when I move the blog to a new host provider.  Here is how EMA is calculated.

One first calculates a Smoothing Constant based on the number of days one will be using for the EMA.  For this example, I will use a fast moving 10-Day moving average.

Smoothing Constant = 2/(10 + 1) = 2/11 = 0.18

Now we use the 0.18 Smoothing Constant to calculate a New Exponential Moving Average.

New Exponential Moving Average = Smoothing Constant (Today’s Close – Yesterday’s EMA) + Yesterday’s EMA.

Assume Yesterday’s EMA = 50 and Today’s Close = 51.  We then have a new 10-Day EMA as calculated.

New EMA = 0.18 * (51 – 50) + 50 = 0.18 * (1) + 50 = 0.18 + 50 = 50.18 or 50.2.

Take another example, where we use a much slower EMA, such as a 195-Day EMA.  First, we need to calculate a new Smoothing Constant.

Smoothing Constant = 2/(195 + 1) = 2/196 = 0.01.

New EMA = 0.01*(51 – 50) + 50 = 0.01 * 1 + 50 = 50.01

Note how little change is taking place with the 195-Day EMA.

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