How does Easyvest's algorithm work?

Easyvest's algorithm plays two roles: it sets each portfolio's asset allocation from the client's risk profile, time horizon and goals, then it projects that portfolio's likely evolution using a Monte Carlo simulation. Automatic rebalancing keeps the allocation on track over time.

The projections: Monte Carlo simulation
This is the core of our algorithmic engine. We simulate millions of market scenarios, each built from four inputs:

• The historical returns of every asset held in the portfolio;
• Their historical volatilities;
• Their correlations with one another;
• Fees, applicable taxes and inflation.

Three key scenarios
We aggregate those millions of simulations into three reference points:

• Normal market: the median simulation, with 50% of scenarios landing above it and 50% below.
• Weak market: the 10th percentile, meaning a 90% chance the actual result turns out better.
• Strong market: the 90th percentile, meaning a 10% chance the actual result turns out better.

A dedicated human manager is nonetheless always by your side to support you day to day and answer your questions whenever you need.