{"id":33159,"date":"2024-03-08T23:46:59","date_gmt":"2024-03-08T22:46:59","guid":{"rendered":"https:\/\/quantpedia.com\/?p=33159"},"modified":"2025-06-04T14:02:39","modified_gmt":"2025-06-04T12:02:39","slug":"quantpedia-in-february-2024","status":"publish","type":"post","link":"https:\/\/vvv.quantpedia.com\/es\/quantpedia-in-february-2024\/","title":{"rendered":"Quantpedia in February 2024"},"content":{"rendered":"

Hello all,<\/p>\n\n\n\n

In the domain of portfolio management, the annuity simulation is an indispensable instrument within the investor’s and trader’s toolkit. All of us will sooner or later retire (some already retired), and it is very valuable to have a model that helps to gauge how long will a stash of money endure if it’s invested in a diversified portfolio of ETFs, funds or trading strategies. And that’s what we have prepared for our Quantpedia Pro clients as our next report.<\/p>\n\n\n\n

The Annuity Simulation Report<\/a><\/strong> investigates spending patterns for your Model Portfolio (built from any combination of our strategies, ETFs, or your uploaded equity curves) over the period of 20 years, with 5 different levels of outlays:
\u2013 from the most conservative (0.2% of the model portfolio is withdrawn on a monthly basis, 2.4% on a yearly basis)
\u2013 through the balanced annuity (0.4% monthly withdrawal rate, 4.8% on a yearly basis)
\u2013 the significant annuity (0.6% monthly withdrawal rate, 7.2% on a yearly basis)
\u2013 the aggressive annuity (0.8% monthly withdrawal rate, 9.6% on a yearly basis)
\u2013 and the very aggressive annuity (1.0% monthly withdrawal rate, 12.0% on a yearly basis)<\/p>\n\n\n\n

As usual, at the beginning of the analysis, we use our state-of-the-art multifactor model to create a 100-year history of synthetic portfolio based on your Model Portfolio to extend the limited historical time window that\u2019s usually available for most of the ETFs and trading strategies. Afterward, we sample the synthetic equity curve and create approximately one hundred 20-year (240-month) historical time periods that are firstly used to study how the one-time investment of $1.000.000 into the underlying model portfolio at the beginning of each period in combination with the monthly annuity would evolve over time. The results can be reviewed in the table and visualized form at the top of the report, whereby the most recent 20-year time period is highlighted.<\/p>\n\n\n\n

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Users can study the whole distribution of the results, be it the total sum that can be taken out as annuity, final portfolio value at the end of the 20-year period, total % gain, floor (the minimal sum that was in a portfolio over the 20-year period), and how long the portfolio would sustain selected withdrawal rate.<\/p>\n\n\n\n

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Secondly<\/strong>, we would like to remind all of you of our\u00a0Quantpedia Awards 2024<\/strong><\/a>\u00a0competition. Time is ticking away<\/strong>, and the end of April is here very soon. Do not forget to join our race for a $15.000 prize pool<\/strong> \ud83d\ude42<\/p>\n\n\n\n

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And as usual, let\u2019s also quickly recapitulate Quantpedia Premium<\/strong><\/a> development:<\/p>\n\n\n\n