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Build a portfolio

Set the parameters

To create a portfolio you have to define several characteristics:
1
The Name of the Portfolio:
Because you are able to create as many portfolios as you wish on ALLUVIE you need to give a clear name to the portfolio to allow you to find it easily.
2
The Initial Value:
On Alluvie we are testing the portfolio on historical data. To do that, you need to give us a virtual initial value which we will use to compute the portfolio. Because it is 100% virtual you can put whatever you want. Most of our users are setting this value to 1.000.000.
3
The Currency:
For the moment ALLUVIE is not allowing multi-currency portfolios. You have to choose one currency and you will be able to select all the stocks within this currency to build your portfolio.
4
The Fees:
Fees correspond to the cost your broker is taking to execute your orders. The value is in percentage so if your broker is taking 0.5% per order then you have to set up this value at 0.005%
5
The Trading Strategy:
It corresponds to the strategy you want to use to generate the BUY/SELL orders on the asset within your portfolio. For the moment you can only have one strategy per portfolio, meaning that all stocks within the portfolio will follow the same strategy. We are developing multi-strategy portfolios.
6
The Start Date
To backtest the portfolio we need a starting date. For example, if you set this date to the 1st of January 2008 we will compute the portfolio since this date and you will be able to see backtest what would have been the performance of the portfolio since 2008.
7
Portfolio Strategy
The portfolio strategy is defining the proportion of each asset in the portfolio. For example, if your strategy is telling you to hold two stocks in your portfolio at the same time: how do you choose the proportion of stock A compared to stock B. This question is answered by the portfolio strategy. If you want more details on portfolio strategies please click here.
8
Description
The description helps you to remind what was the purpose of your portfolio.
9
The Benchmark
When you create a portfolio you might be interested in comparing the performance of your portfolio against another asset. For example, if you build a portfolio with all the stocks of the NASDAQ you might be interested in comparing the performance of the portfolio with the performance of the NASDAQ index.
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The Assets
This will define the authorized assets within your portfolio. Remember that all the assets you are selecting here will not always be within the portfolio you have to see that as your investment area: the question of when they will be physically in your portfolio depends on the strategy you have selected.
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Portfolio Constraints
The portfolio constraints are the gatekeeper of your portfolio they are here to override your strategy in case of emergency. Imagine you have designed a strategy that is telling you to keep a stock within your portfolio even if this portfolio has faced massive losses. It might be really risky. To prevent this risk you can set up a Stop-Loss constraint at 5% that will guarantee that, if one of your position is losing more than 5% then Alluvie will cut this position even if the strategy is telling you to keep this position. If you are interested in the portfolio constraints please click here.

Last steps

Once you have set up all these parameters you just have to save the portfolio and wait until it is computed. You will be able to see the calculation progress in the calculation interface. Once the portfolio is calculated you can see how the portfolio had performed since the initial date.
If you activate the favorite mode, the portfolio will be updated every day and you will receive a daily email summarizing the performance of the portfolio and the orders you have to execute to reproduce the performance of the portfolio in real life.
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