Robo-Advisor
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xWin RoboAdvisor is similar to traditional robo-advisor in that the goal is to create an allocation specific to each user based on factors. Using our historical data, the robo-advisor uses an algorithmic approach to calculate how much a user should invest in a token. xWin Robo-Advisor recommends not only native tokens but also our xWin Vaults.
Once the user creates a private vault through RoboAdvisor that fund becomes a .
What allocation approaches are available?
Individual investors provide age and risk tolerance parameters and choose the allocation model. xWIN engines provide two approaches:
Mean-Variance Optimization
Weighted Average Sharpe Ratio
xWIN platform continuously captures all the related market data of all the universal assets supported including our strategies. The data will be analyzed and transformed into statistical data such as expected returns, volatilities, covariance, and Sharpe ratio. These data are important parameters to achieve the optimal asset allocation for our clients
Mean-Variance Optimization
In portfolio management, mean-variance analysis is a method used to determine the optimal allocation of assets in a portfolio using the factors provided including risk tolerance and age. It involves considering the expected return and risk (variance) of each asset in the portfolio and finding the combination that maximizes the expected return for a given level of risk. The mean-variance analysis allows investors to benefit as it enables better decision-making and improved performance. Mean-variance analysis helps investors create the optimal combination of assets by maximizing the expected returns for a given level of risk. Putting all the investment into one asset is very risky and may not return as much. Diversification allows investors to invest different portions of their accounts into many different strategies that reduce risk. The xWIN optimizer creates the best portfolio for its investor by creating not only the best tokens for the investor but also how much allocation for each asset using the inputs from the user.
Weighted-Average Sharpe Ratio
The Weighted Average Sharpe Ratio uses the Sharpe Ratio, the measure of risk-adjusted return. The risk-adjusted return considers the risk as well as the risk-free rate to see how much return a token is compared to the safest option like stable coin staking. The approach will first allocate the major allocation into stable coin-staking assets based on the risk tolerances as a parameter. Finally, the remaining weights will be allocated based on the Sharpe ratio weight of each risky token.
W = Weighted average
n = Number of tokens
wi = weight applied to X values
Xi = Sharpe ratio value
How To Use xWIN Robo Advisor?
