Portfolio Optimization
If frequent algo-trading isn't for you, try optimizing a portfolio of your favorite stocks to yield the greatest returns for the smallest amount of risk. (Sharpe Ratio)
In this example, four stocks (AAPL, COST, MSCI, NVDA) were chosen and tested using data starting from January 1 2018
This graph shows the efficient frontier simulation using 100000 randomly generated portfolios. The optimal portfolio had 21.7% AAPL, 45.12% COST, 33.01% MSCI, and 0.17% NVDA.
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This graph shows the optimized portfolio's returns since 2018 (Blue) compared to market tracker SPY (Orange). The optimized portfolio outperformed the market by ~5X
* An evenly distributed portfolio (25% each) of these four stocks would have returns similar to that of the optimized portfolio but with much higher volatility.