Oster's Investment Plan (OIP)Oster's Investment Plan (OIP) is a versatile and powerful tool designed to help traders and investors create and evaluate their long-term investment strategies . Unlike many conventional investment tools, OIP emphasizes customization, allowing users to design personalized savings plans and compare the performance of their portfolios against chosen benchmarks. Whether you're setting up a new investment plan or analyzing an existing one, OIP provides comprehensive insights into your portfolio's growth and performance.
Tailored Investment Planning:
OIP enables users to create customized savings plans with up to five assets from any available on TradingView. This feature offers unparalleled flexibility in asset selection, allowing investors to diversify their portfolios across various markets and asset classes. With OIP , users can freely determine the weighting of each asset, ensuring the portfolio aligns with their individual investment strategies and risk preferences .
Comprehensive Fee and Cost Analysis:
One of OIPs standout features is its ability to factor in nearly all cost components associated with investing. This includes annual deposit fees, fees on savings rates, tax deductions on dividend payouts, potential savings rate dynamics, and the Total Expense Ratio (TER) of funds. By considering these costs, OIP provides a realistic and accurate projection of your portfolio's growth, helping you identify the most cost-effective broker or investment platform .
Benchmark Comparison:
OIP allows users to select any benchmark to compare their portfolio's performance. This feature enables investors to gauge their portfolio's returns against broader market indices or specific sector benchmarks, providing valuable insights into the effectiveness of their investment strategy. The ability to choose and change benchmarks ensures that OIP remains relevant and adaptable to different investment goals and market conditions.
Reinvestment of Dividends:
For investors who prefer to reinvest their dividends, OIP can incorporate annual dividend reinvestments into the portfolio's growth curve . This feature accounts for the compounding effect of reinvested dividends, offering a more accurate representation of potential portfolio performance over time.
Use Cases:
Creating a Personalized Savings Plan:
With OIP , users can design a personalized savings plan tailored to their financial goals and investment horizon. By selecting up to five assets and determining their weightings, investors can create a diversified portfolio that suits their risk tolerance and investment preferences. OIP then calculates the potential growth of the portfolio, factoring in all relevant costs and fees, to provide a clear picture of the expected returns.
Evaluating Broker Fees:
For those who have already established a long-term investment plan, OIP can be used to compare the costs associated with different brokerage platforms . By inputting the fee structures of various brokers, investors can identify the most cost-effective option, ensuring that they maximize their returns by minimizing fees and expenses.
Sophisticated Calculation Methodology:
OIP employs a robust calculation methodology to derive its insights. It takes into account the initial investment, recurring deposits, fees, taxes, and the performance of the selected assets. The tool adjusts for annual deposit fees, dynamic savings rates, and the reinvestment of dividends, providing a detailed and nuanced evaluation of the portfolio's performance.
Interpretation:
OIP plots the total equity of the savings plan and the chosen benchmark , allowing users to visually compare the performance of their portfolio against the benchmark. The tool also displays the total invested amount , helping investors track their contributions and returns over time. Dynamic color coding enhances visual clarity, with the savings plan and benchmark differentiated by distinct colors for easy interpretation.
Conclusion:
Oster's Investment Plan (OIP) represents a significant advancement in investment planning and portfolio analysis. By offering customizable parameters, comprehensive fee considerations, and benchmark comparisons, OIP equips investors with a powerful tool for creating and evaluating their investment strategies. Whether you're a seasoned investor or new to the market, OIP provides invaluable insights that can inform and enrich your investment journey.
By integrating these features, OIP stands out as a sophisticated and user-friendly tool for managing and optimizing investment portfolios. Its emphasis on customization, detailed cost analysis, and flexible benchmarking makes it an essential resource for any investor looking to maximize their returns and achieve their financial goals.
Diversification
GDP BreakdownProvides an easy way for viewing the sub sections that make up a country's total GDP. Not all countries provide data for each subsector (Agriculture, Construction, Manufacturing, Mining, Public Administration, Services, Utilities). Only countries that provide complete data are able to be selected in the settings. If I've missed any please let me know in the comment section so they can be added. This is much easier than having to individually selecting each ticker for each country when looking to compare how diversified an economy is.
Diversified Investment EMA Cross Strategy SimulatorThis simulating indicator proves that even if you use a simple strategy, you can reduce your risk by diversifying your investments.
The strategy itself is simple.(only long)
Buy when 50 days EMA crosses over 200 days EMA.
Sell when 50 days EMA crosses under 200 days EMA.
Or, stop loss when the asset falls by 2% (eg).
Using this simple strategy on an asset is just a test of your luck.
However, this capital change graph shows that risk can be reduced by diversifying investment into eight assets rather than one asset.
Options
Total Assets Capital Change represents the sum of capital changes for 8 assets. The gray line is the initial capital.
Each Asset Capital Change represents all eight asset capital changes. In this case, the gray line is displayed as the initial capital divided by 8.
The rest of the options show a graph of capital change for each asset, showing when buys and sells occurred.
And set the start date, initial capital, stop loss %, and commission.
And select the 8 assets you want to invest in and you are ready to go. To effectively reduce risk, uncoupled assets would be better if possible.
The table in the lower right shows the selected asset and color.
Please enjoy the simulation.
Coefficient of Variation - EMA and SMA StDevYet another way to try and measure volatility. An alternative to using ATR is Standard Deviation, it can be used to measure volatility or what is also known as risk. SD measures how dispersed or far away the data is from the mean. It's commonly seen in risk management formulas or portfolio diversification formulas. The problem however is that the numbers that ATR and SD give off from one equity might not be relative to others or its own past. For example, SPY can give a large number despite not being as volatile as other equities while others being compared to can have smaller volatility numbers and still be more volatile looking.
A solution I thought of is to use percentages that are relatable to different equities. I found out another name for this idea comes from statistics and is known as coefficient of variation, also known as relative standard deviation. This helps see the volatility as a percentage and not just a number that only relates to what is being seen at the moment. I put in a border line on the zero level to see where zero is at but also to edit in case there is such a thing as a percentage number that can be too high or too low for volatility to be looked at if needed. The average and standard deviation formulas can use either simple moving average or exponential moving average.
Portfolio ManagerMeet our all-new Portfolio Manager
The idea of such a tool was the lack of anything like that out there. Recently I've seen that the culture most common around the newcomers to trading has become extraordinarily scalping-like and much leaned on high-risk operations.
Fundamental cornerstones of math and statistics that are keys to lasting networth growth have been wholly forgotten.
One of the most efficient and simple ways that I tell my friends to make money without getting too technical is diversification.
It's merely math; I suggest reading about the Modern Portfolio Theory, based on the work about diversification of uncorrelated assets by Markowitz(Nobel-winner because of that).
Translating it to mere humans, the more assets you have, the more uncorrelated they are(as in their pattern of moves are nothing alike), the fewer risks of losing money in a given time you have.
So by following such stats, it's clear to say that's always important to trade on different fronts.
To quantify and qualify who diversified you are and how much risk you're taking, we decided to create a pretty handy tool.
Let's get the samba going:
C-Index is the individual correlation score of that asset compared to the given portfolio correlation average.
C-Score is the final correlation score of your portfolio.
Below that, we got the performance tracker, whatever timeframe you're benchmarking your portfolio, it will show there. I like to back-test for one year.
And last but not least, we have a proprietary risk exposure gauge, so we run a few math tricks, and we calculate how was the maximum of your investment that was exposed through-out the time range we set in. So let's say we have a 10% risk exposure over 365 days. It means that over one year at maximum we could have lost 10% of our investment.
If you're not familiar with correlation:
-> +100 score = Fully Correlated(Similar Behaviors)
-> 0 Score = Totally Uncorrelated(Different Behaviors)
-> -100 score = Inversely Correlated(Opposite Behaviors)
So any asset that averages between -20 and 20 is very little correlated to its comparison. Therefore, their pattern of behavior tend to be independent
By comparing the change and the risk exposure, you can assess your risk/reward ratio - golden information.
Not only that, but we also added several markets so you can easily benchmark your portfolio(up to 9 custom assets) to a diversified gamma of markets in the world.
We diversified each benchmark portfolio within its available industries for maximum risk mitigation.
You can change your benchmark range, nine custom assets, labels preferences, and nine benchmark portfolios, including NIKKEI, NASDAQ, IBOV , ASX , DAX , CRYPTO, FOREX, FTSE , SHANGHAI.
If you liked what you see take a look at our signare to get access to our scripts!
