Introducing Fund Trader Pro, LLC (FTP) a new company with a new approach to managing 401k retirement accounts. FTP is a robo advisor with a personal, customer centric business model.
FTP’s approach utilizes a momentum based model co-authored by Bill DeShurko, one of FTP’s Managing Members. The research was awarded the prestigious Charles H Dow Award by the Market Technicians Association in 2008.
According to DeShurko, Target Date Funds are not the best solution for most investors. Such funds have historically underperformed the market and have risk profiles too high for their stated objective. DeShurko cites the Fidelity 2010 fund that lost 30% of its value in 2007–2008. FTP’s approach recommends investing in a plans top funds and will rotate out of the market entirely during extended sell-offs. While no strategy will effectively handle a “flash crash”. The model has shown back tested results that sharply reduce the negative impact to account balances during larger bear markets.
New subscribers send the list of the funds available in their Company’s 401(k) plan to FTP. The funds are screened and modelled using the firm’s proprietary algorithm. Subscribers are then emailed recommended holdings. Depending on the Subscriber’s plan and model, recommended changes are emailed to Subscribers on a monthly basis. FTP recommendations are specific to an individual’s 401(k) plan provided by their employer. FTP also develops and maintains a custom web page on their site for each modelled company. Subscribers will have access to Individual company pages that include a list of funds used for the model, commentary based on company’s plan, back testing results, and current recommendations
The algorithm used by FTP relies heavily on back tested data, however FTP does not pick the investments available to a plan participant. FTP uses the funds provided by a subscribers’ employer and plan provider. All investing involves risk of loss. Past performance is no guarantee of future results.