With Ed Downs

3 Breaking News for all OmniVest Subscribers

The Evolution of OmniVest

OmniVest News December 2015 In 2015, a NEW WAY to create Portfolios emerged, thanks to the efforts of our best scientists and customers. - A Method that has now been proven in REAL TRADING.

- One that is now available for ALL OmniVest Users to apply.

www.myomnivest.com/documents/OVNews1215.pdf

Up 45% in 2015 (on just 20% invested)

L.D. Newby – Registered Investment Advisor, began experiments in mid-2014 with Club Members Mark Holstius and Steve Mayo.

H.R. TPM CAR MDD Avg MDD %/Trade % Invested Final Equity

2015

L.D. Newby

This approach has been VERY successful. At the end of 2015, L.D. was up 45% in his ACTUAL ACCOUNT using this method! And this was on just 20% invested on average.

Up 18% on just 33% invested December 23, 2015.. Exactly 1 year ago during the Christmas holidays, I set out to build a conservative custom portfolio using Nirvana's time tested RTM strategies trading large cap equities. Using the great OmniVest tools along with readings from Steve Mayo's www.omnivesting.com plus Mark Holstius and other Nirvana Club member guru's forum posts (what a fantastic group of amazingly smart people!) I was able to accomplish my goal, which held up in back tests all the way back to the year 2000! I turned it on in my live GX Trader account in February of this year using the cloud-based Trade Processor which is awesome. The account is up 18% so far this year, or an annualized return of about 22%, with average percent invested of only 33%. Not bad for a conservative approach. Ed, as pilots, we can both appreciate the comparison of the Trade Processor to a good autopilot. I cannot imagine trading without it! Thanks for all you do… - Bruce Britt

The NEW! Portfolio Builder In 2015 we collaborated on a NEW TOOL for Building Portfolios using SINGLE SYMBOL STRATEGIES.

Pick a List of Stocks or ETFs

Specify Time

Push Build

A New Portfolio is Born! Just SAVE it, Use it, PUBLISH IT!

Community

Easily publish Portfolios you build to the Community page to help us advance the platform. We appreciate it! Many of the Community Portfolios have held up extremely well, and in fact are beating our original Pro Portfolios! We can’t wait to see what the Community will do with the new Portfolio Builder resource!

3 Using Portfolio Builder

How to access Portfolio Builder is available to ALL Subscribers. Simply click Tools, Portfolio Builder

1. The Symbol List

Select Sector, Group,

Subgroups or Custom

Can filter all lists EXCEPT custom on

Price & Volume Note: To create a Custom List, access List Manager from the main menu by clicking Tools List Manager.

2. Approach Tab

Specific Types of Strategies

Direction: Long, Short

or Both

Condition Filters are covered in the Advanced Section

Checking this option will cause a SELECT (Single Symbol Strategy) Portfolio to be constructed. **

** At this time, we suggest you select One Strategy Type (or use a small symbol list) or the web page may time out. We are working on this issue now.

3. Simulation Tab

Establish Simulation (Back Test) Date Range.

Simulation Starting Balance & Method

Different theories exist on how large the test date range is, as well as whether to include a Forward Test. In our development, we typically use 4-5 years to test and reserve at least a 1 year Forward Test.

4. Method Tab

This Tab specifies HOW the Strategies are to be selected. Filter Only uses the Filters to the right to establish which Strategies are selected.

Filter, Rank & Combine selects Strategies automatically based on a 2-Step process. 1. Rank the TOP X Strategies according to “Rank On:” 2. Combine Y of these Strategies based on the

“Optimize On” criteria.

Filters

Update # ReCalc Curve

4. Methods: How the Algorithm Works

Step 1: The Program examines the Statistics generated by all Strategies to select the top 10 (in this case) based on the Stability metric. Step 2: using ONLY these top 10, the program combines them to create a final set of 5. The way it does this is by (a) taking the very best using the metric (again, Stability) and combining it with every other Strategy in the 10, to determine which PAIR generates the best value for Stability. Then, it combines that pair with every one of the remaining 8 to determine which one to add to create a TRIPLE. This continues until 5 Strategies have been selected.

4. Methods: Filter (Statistics) Defined

Accuracy of Trades (e.g., 80% Accurate) Min Profit per Trade as a percentage (e.g., 1.5%) Min Compound Annual Return Minimum CALMAR Ratio (CAR/MDD) Minimum Return on Average Investment Minimum Trades per Year (average) Minimum Stability (will approach 100 if DrawDowns are very low) Minimum Consistency (will approach 100 if Returns are very consistent) Maximum Draw Down Maximum AVERAGE Annual MDD

You can change these values AFTER a run to update the Selected Strategies

5. Strategies Tab

Shows the Strategies that were Selected based on the Method Tab settings. You can change the selection and then press Re-Calculate Composite Equity Curve

Create equity curve (next slide)

Composite Curve (all tabs)

Test Period

Calmar Ratio CAR/MDD Alloc per Trade Average allocation Average % Inv Account usage Ending Equity End of Sim Equity

% Wins Hit Rate (Accuracy) TPM Trades per Month CAR Compound Annual Return MDD Max Draw Down

Saving the Portfolio

Major ETFs Enter a Portfolio Name and Click Save As

Editing the Portfolio

Edit, Upload new image, and Save to Custom Area.

Image

Publishing to the Community

Join fellow users in advancing the platform by publishing your finished Portfolio to the Community Page.

3 Advanced Information

Condition Filters

Use Conditions on a Market Symbol or the Equity Curve of any Strategy to Enable or Disable trading when the condition is On/Off. Conditions are established in the Condition Manager (Tools Condition Manager) and are simple OmniScript formulas. Enter and Exit Positions check boxes cause trades to be entered/exited dynamically.

Long Trades are allowed

Short Trades are allowed

Condition

Symbol

No Trades are allowed

Optimization Considerations Using Single Symbol Strategies, the Back Test will almost always look great, so we need to be careful not to over-optimize.

3 Suggestions: 1. Be sure to look ahead of the Back Test and/or after the Back Test to make sure performance holds up in these periods. 2. Examine the Individual Strategies to (ideally) see more than just a few trades over a long period of time. 3. Use Condition Filters to align the (fewer) trades with a market direction – that is, establishing a true Cause and Effect.

Examine the Period PRIOR TO the Back Test

This Single Symbol Strategy only has one trade.

3 Thank you!