We are definitely not the first two legally. For SEC regulation purposes, we are a newsletter that provides non-personalized recommendations on stocks, futures and ETF’s to buy and sell. The newsletter recommendations are powered by algorithms which we and our associates develop. 

WE ARE NOT A FINANCIAL COMPANY. WE ARE A TECHNOLOGY COMPANY THAT DEVELOPS TRADING ALGORITHMS THAT YOU CAN RENT AND CONTROL

The 1985 U.S. Supreme Court Case Lowe vs. SEC (472 U.S. 181)  is what gives us our existence. Read more about it here. The law essentially gave newsletters the right to exist because they are publishers of opinions as protected by the first amendment. As long as the opinions are not person-to-person and are not customized to an individual, any investment advice published in a newsletter form is considered ok.

This is then combined with another third-party software that you subscribe to that automates the rental of the algorithm in your own brokerage account. The third-party platform software that you independently subscribe to you allows you the ability to control how those trades are placed in your account. We do not have any control over your brokerage account or the trades that are placed. You do. 

Given the above, we cannot offer personalized recommendations on investments that are tailored to your particular situation. The responsibility of deciding on following our recommended trades is yours. We cannot assist you in executing any trades.

The value proposition we offer our clients however provides some advantages over a “hedge fund” model.

A typical hedge fund costs around $75K to $120K to operate. This cost is passed onto the subscribers in various forms. There are constraints with the hedge fund in terms of who and when you can bring in money and when you can take it out.

Operating a newsletter is cheaper; since it is structured as an “educational” service and hence the onus is on you as the subscriber to follow the instructions of the newsletter.

We are also different from a financial advisor because we do not provide personalized services that a financial advisor does. Unlike a financial advisor who offers portfolios from other wealth managers or mutual funds and personalizes those offerings to create a portfolio that is customized to your needs; our core competency is in creating algorithmic trading strategies which are generic and not personalized; which you as a subscriber are choosing to follow. 

This is how our technology works: Our algorithms are written on the Quantconnect platform which runs the algorithm. The output of the algorithm is what would be considered “newsletter recommendations”. Our subscribers are then renting the algorithms to have them execute directly in their brokerage accounts using a third-party platform that you independently subscribe to. 

In summary, we are a more “efficient” and hence “cheaper” option to Hedge Funds; also safer considering that the trades are placed in your brokerage account giving you “control” and “choice” in deciding which strategies to follow, when and by using what dollar amounts. We are also an “easier” and “more efficient” option to Newsletters given that the trades are automatically and almost instantly placed.

Read our disclaimer clause here and our licensing agreement here to make sure you are comfortable before you subscribe to any of our strategies. Please continue to rely on your financial advisor for any personalized advice.