How to Follow a Designer Model

In order to invest in a Designer Model you will need to subscribe to one first. Go to to the Designer Model directory by clicking on Manage→ Designer Models to find one that suits you.

Here you will find a list of all the available models with key statistics and the name of the person who designed it. You can filter the list based on your "hard" preferences in section 1 below.  A "hard" preference is something that is either true or false, like "Model returned 5% in the past 3 Months".

You can then sort the models based on "relative" preferences using the Multi Sort in section 2. The Multi Sort ranks the models based on your chosen metrics.

The Multi Sort is a great way to find a model with the best mix of the things that are important to you. To change the way Multi Sort works click anywhere in the section to see all the options shown below. Simply click on the metric you want changed multiple times to flip through the options. The image below will rank the models based on 4 metrics: Trading Commitment (lower is better), Sharpe & Sortino ratios (higher is better) and Launch Date (older is better). All chosen metrics participate in equal weights towards the final score.

Click on the model's name to learn more about the model. The model's page offers lots of information, including ways to ask questions directly to the model's author. If you decide to follow the model click the Subscribe button (in red below). 

NOTE: You will need to accept some disclosures and, for models that are not free, agree to be billed for your subscription.

When you subscribe to a model two things happen: 1) you will receive emails when something changes and 2) you can invest in the model in your Manage Accounts. 

To invest in the model go to the account you wish to use and click on "New" in the left bar or "New Strategy" from the account menu. The sample below is a paper account (not linked with a broker) and is already invested in one strategy, "Small Cap Quality."

Next you will be presented with several choices. Pick "Invest Using a Designer Model" and choose the one you subscribed to. Next enter the amount you wish to invest and you will get the transactions list to match the current holdings and weights of the model. Like this:

You can review the recommendations and even choose not to follow some of them (if you do so your account strategy will be out of sync with the model). Notice that the total transaction amount is less than $25,000. The total is just an estimate based on latest prices and the fact that whole shares are used (we hope to offer fractional shares in the future). 

When you click on "Create & Commit" the strategy "Based on Buffet" is created.  Since this is just a paper account the transactions are "executed" immediately with the latest prices. From this point on the performance is tracked (including dividends) and you will be notified via email of any changes. 

The "Sample Account" is now invested in two strategies. You can monitor each strategy individually as well as the whole account.