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Why use Wealthfront when you can use Quantopian as the robo-investor?

Just attaching an algorithm that does what most robo-investing sites do; but does so for free:

  • Tax loss harvesting (at defined thresholds)
  • Rebalancing (at a defined threshold)

The algorithm also places limit orders at the 10 day moving average to take advantage of small dips as you continue to invest. The portfolio is one of those suggested by Wealthfront.

It also has an option to utilize Robinhood gold if you have it.

Clone Algorithm
Backtest from to with initial capital
Total Returns
Max Drawdown
Benchmark Returns
Returns 1 Month 3 Month 6 Month 12 Month
Alpha 1 Month 3 Month 6 Month 12 Month
Beta 1 Month 3 Month 6 Month 12 Month
Sharpe 1 Month 3 Month 6 Month 12 Month
Sortino 1 Month 3 Month 6 Month 12 Month
Volatility 1 Month 3 Month 6 Month 12 Month
Max Drawdown 1 Month 3 Month 6 Month 12 Month
# Backtest ID: 59828674d345fa4fa4bc3869
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2 responses

Perfect use of 100% initial capital and without going over (no margin) and thus that returns curve is accurate. Now with Robinhood Gold in mind, can deliberately go beyond and into margin? This will show you returns proportional to the amount invested.

Thanks Blue for the check!

One of the main reasons that this doesn't go above a leverage of 1 is my buy_longs() function. This looks to calculate what the available cash is, and appropriately put it to work to buy the asset classes/ETFs that are under-represented. By placing limit orders we prevent any price slipping away from us that can happen when folks use the order_target_percent() function. It also prevents rounding issues that can happen with that function and smaller accounts. Full disclosure though, I do use the order_target_percent() function to sell stocks/ETFs for tax loss harvesting or reducing the ones that have grown to be overweight.

This approach is also helpful for individuals who will be contributing money to the account on a frequent basis - this is constantly checking to make sure it puts your capital to work!