Adding constraints to your portfolio building process, allows you to dictate certain outcomes of your optimization results. For example, you can determine that your optimized portfolio will include Tech stocks but no more than 30% of the portfolio. Or you can decide that AAPL will be purchased for $150,000. The system will build your optimal portfolio - with your constraints in the base.
These constraints will hold across all of the portfolios displayed along the efficient frontier, and so you can view up to 12 different portfolios across the entire range of risk levels, all maintaining the same constraints you specified.
Cherries allows you to apply constraints to the following Portfolio components:
Security - Select a specific security, or several securities, on which to apply constraints (see note below on Available securities)
Sector- Select a specific sector, or several sectors, on which to apply constraints
Market Cap - Select From three groupings - Small Cap, Mid Cap or Big Cap. (See note).
Dividend/Split - Select companies who have either gone through a stock split/dividend distributions or have not.
Constraints on Backtesting Portfolios
Cherries allows you to apply constraints to Backtesting portfolios, as well as regular portfolios. You can recreate a portfolio according to any desired strategy by using the constraints, adapting the strategy as you go on to create multiple Backtesting portfolios, and receive analysis as to their scenarios and results.