General Questions

What are Designer Models?

Through the years, we've become aware that some people are especially proficient in using our tools. Designer Models is a marketplace that permits advanced users of Portfolio123 to share the results of their models with other subscribers, get rewarded by their work, and keep their "secret-sauce" private.

What makes Designer Models different?

While there are other sites that offer opportunities to follow strategies created by others, Designer Models is unique in that it resides on Portfolio123, a reputable platform designed specifically to create and test investing models. We impose a set of constraints to designers of strategies for simulated and "live" updates to make these models realistic and tradeable by regular investors. Designer Model designers are paying members of Portfolio123 that, through the years, have refined their model design skills and profited.

Subscriber Questions

Why use a Designer Model?

Every Designer Model designer has a different niche. Some may be experts in dicovering value, others with minimizing draw-down, etc. The one thing they have in common is that they found ways to profit using Portfolio123. By subscribing to a Designer Model you are effectively tapping into years of experience and know-how in an easy to use format.

How much does it cost?

Portfolio123 provides a number of models that are included with your subscription. Designer Model contributors have the option to let subscribers follow the model for free or they can set their own price.

Is the performance real?

No, the models are not actual brokerage accounts, but we do everything we can to make it attainable by someone following the trades. For example, we disallow editing of past transactions. Trade prices are updated by the system with a future price, such as the close of the day or next day's open, to enforce no look-ahead manipulations. Day-trading is not allowed. Finally we impose realistic slippage & transactions costs for all Designer Models.

Is the past performance realistic?

Simulated performance is calculated by Portfolio123's point-in-time engine, the industry leader in backtesting financial models. Our tools prevent forward-looking and survivorship bias from muddying historical results. We also enforce many constraints that could be used to curve-fit past results.

Do I have to be a Portfolio123 Subscriber to follow Designer Models?

Yes. Only subscribers of Portfolio123 can see the current holdings, latest transactions, and receive email notifications from the model designer.

Premium Portfolio123 Subscribers can follow any Designer Model that is accepting new members. Free Portfolio123 Subscribers are only allowed to subscribe to paid Designer Models.

Designer Questions

Do I need to be a registered investment advisor?

Current laws in the United States require registration to give advice to specific individuals or organizations. Publicly sharing an opinion on a stock—or, in this case, a whole portfolio of them—does not require licensing. It is the responsibility of each designer to determine if their activities qualify them as investment advisers within the meaning of the law and to comply with any federal or state laws or regulations that may be applicable.

How much can I earn?

Currently we are imposing the following limits on Designer Models: (1) the maximum number of subscribers is limited to 500 on paid models with a monthly subscription fee below $100; (2) the maximum number of subscribers is limited to 2 on paid models with a monthly subscription fee above $100. Portfolio123 keeps 20% of the subscription fee. Subscriber credit card processing is included in the 20%. This means that you retain 80% of the fee from each subscriber minus processing costs (depending on how you want to get paid).

How do I launch and manage a Designer Model?

A Designer Model is just a P123 portfolio in your account and its associated statistics. For more information see Your Launched Designer Model pages.

Do I need to rebalance Designer Models?

No. All Designer Models rebalance automatically. The rebalance recommendations are sent out on Monday to all subscribers before market open, and then updated on Monday night with intra-day prices.

How much of a Designer Model strategy is made visible?

Holdings, scheduled transactions, and recent transactions can only be accessed by the subscribers of a Designer Model. Users who are not subscribers can only see closed trades (30 days lagged). The strategy description is provided by the designer. Since a Designer Model is simply a Portfolio123 portfolio, the normal visibility settings that you choose apply.