What's new in the Optimus Lab? Adaptive Tactical

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Hi,

Have you ever invested in a tactical strategy that stopped working?

We have a solution – Adaptive Tactical.

Adaptive Tactical

- strategies that combine adaptive rotations with adaptive overlays

What does this mean?

When we launched Dynamic Equity and Equity Rotation back in 2016, we talked about what we refer to as “The Bench.” Dynamic Equity and Equity Rotation are comprised of 4 silos that contain sub-strategies, while our new strategy Tactical Equity is comprised of 3 silos. In each silo, only one sub-strategy is used at a time while the other sub-strategies sit on the bench waiting to be rotated into the portfolio. At set intervals, when a sub-strategy in the portfolio becomes tired, just like a basketball player that's been playing too many minutes in the game, that tired sub-strategy can be benched and another fresh sub-strategy can then take its place. This continuously revitalizes the strategy so that no one underperforming sub-strategy can drag the entire strategy down. This process is what we refer to as “Adaptive Rotations”.

In our new strategy, Tactical Equity, we’ve also applied the bench concept to what we call Overlays. Overlays are the methods used to generate buy and sell signals, moving the portfolio to cash in a down market when an overlay generates a sell signal or moving the portfolio into equity ETFs when a buy signal is generated. Instead of having one overlay on the portfolio, we can have multiple overlays, each responsible for the buy and sell signals for its portion of the portfolio. At set intervals we can pull out a tired overlay and replace it with a fresh overlay sitting on the bench, continuously refreshing the portfolio by allowing an underperforming overlay to be replaced. This process is what we refer to as “Adaptive Overlays”.

We think this Adaptive Tactical process gives Optimus Tactical Equity an edge over tactical peers by keeping the strategy fresh from multiple dimensions – buy signals, sell signals, and portfolio positioning.

Watch for existing and future equity strategies to utilize Adaptive Rotations and Adaptive Overlays as well.

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Optimus Advisory Group manages liquid tactical and alternative investment strategies that meet the needs of our clients. We use a disciplined, quantitative methodology to build and manage our portfolios.

Over a full market cycle, these strategies are designed to provide superior risk-adjusted returns while maintaining a low-correlation to traditional market indices.

All strategies are net results after subtracting a 1.50% annualized fee.

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(877) 885-7468

info@optimusadvisory.com

Disclosures

The performance results shown include the reinvestment of dividends and other earnings. Comparison of the Optimus Advisory Group Programs to any other indices is for illustrative purposes only and the volatility of the indices used for comparison may be materially different from the volatility of the Optimus Advisory Group Programs due to varying degrees of diversification and/or other factors. Different types of investments involve varying degrees of risk and there can be no assurance that any specific investment will be profitable. Optimus Advisory Group does not make any representation that the Optimus Advisory Group Programs will or are likely to achieve returns similar to those shown in the performance results in this presentation. Optimus Advisory Group reserves the right to trade different funds within their models.

The historical S&P performance results (and those of all other indices and index funds used as proxies for indices) are provided exclusively for comparison purposes only, so as to provide general comparative information to assist an individual client or prospective client in determining whether the performance of the Optimus' portfolio meets, or continues to meet, his/her investment objective(s). It should not be assumed that any Optimus portfolio holdings will correspond directly to any such comparative index.

Different types of investments and/or investment strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy (including the investment strategies devised or undertaken by Optimus Advisory Group) will be profitable for a client's or prospective client's portfolio. All performance results have been compiled solely by Optimus Advisory Group and have not been independently verified.

Performance results reflect hypothetical results that were achieved by means of the retroactive application of a back-tested model and, as such, the corresponding results have inherent limitations, including: (1) the model results do not reflect the results of actual trading using client assets, but were achieved by means of the retroactive application of each of the above referenced models, certain aspects of which may have been designed with the benefit of hindsight; (2) back-tested performance may not reflect the impact that any material market or economic factors might have had on the adviser’s use of the model if the model had been used during the period to actually manage client assets; (3) for various reasons (including the reasons indicated above), clients may have experienced investment results during the corresponding time periods that were materially different from those portrayed in the model.

The Optimus performance results do not reflect the impact of taxes.

Advisory Services offered through Optimus Advisory Group, a Registered Investment Advisor.

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