What is the Strategy feature?
The Strategy feature in Stratifi is a powerful feature associated with Model Portfolios. Basically, the Prism Score/Portfolio Risk Score of a particular model or strategy can differ from the constituents used within the strategy. For example, TSLA scores a 9.3 in our system. However, you could employ a particular strategy, that uses TSLA, which has stop losses/hedges etc. The performance of this strategy could produce less volatile results compared to just holding TSLA. When those returns are loaded into Stratifi, the associated Prism Score/Portfolio for the strategy would be lower; let's assume 7.1 in this case.
Now let's say you put a client into this TSLA strategy. If you were to sync to the holdings for the client, their only holding in their account would be TSLA and their account Prism Score/Portfolio Risk Score would show as 9.3. However, they are a part of your TSLA strategy which scores much lower; meaning that the risk presently showing for the client is not completely accurate. This is where the Strategy feature comes in handy. When a Strategy is associated with an account, the Prism Score/Portfolio Risk Score of the Strategy will be used as the Prism Score/Portfolio Risk Score for the account, producing a more accurate depiction of the risk that the account is subject to. See an example of this in the How do I apply a Strategy to an account? section below.
How to create a Strategy
Any Model Portfolio can be turned into a Strategy. Whether you are creating a Model Portfolio from scratch or editing a Model Portfolio, all you need to do is enable the Set as a strategy option to categorize the related Model Portfolio as a Strategy.
When a Model Portfolio is categorized as a Strategy, the background of its Prism Score will change to clear from solid. This makes it easy for users to identify strategies.
How do I apply a Strategy to an account?
This is done via the Matching Model feature in the accounts table under the Overview tab.
Just click in the relevant field and start typing the name of the Model/Strategy. Notice that the system denotes which models are strategies. Additionally, you can identify strategies by their clear Prism Score backgrounds. Click on the name of the relevant Model/Strategy that you would like to apply to the account.
Once done, the Prism Score of the Model/Strategy will be applied to the account. In the example below, the account Prism score changed to 5.9 from 7.6.
If you need to remove the assigned Model/Strategy then you can just click the small "x" the right of the name.
If you remove a Strategy then the Prism Score of the account will change to that of the holdings in the account.
Additionally, you can assign Strategies (or regular Model Portfolios) to accounts in bulk:
1. Download your account information via the CSV Update feature in the Clients section
2. Download your model portfolios (this is to get their IDs)
3. Get the ID(s) of the relevant Models/Strategies that you would like to apply to accounts. In my example, my Test JJ Model/Strategy ID is 45593.
4. Apply the ID(s) to the relevant accounts via the Matching Model ID column in the clients/accounts file you downloaded in Step 1
5. Once changes have been made, save the file.
6. Upload the updated file via the CSV Update feature in the Clients section
If you have any questions or run into any issues, please contact support@stratifi.com for assistance.