Understand what you are looking at
Ten minutes here will make every number in Quantfolio mean something.
Risk and return travel together
Higher expected returns come from accepting larger swings and deeper temporary losses. The quiz exists to find the level of swing you can genuinely live with — not the one that sounds exciting on a good day.
Volatility
How much a portfolio's value moves around its average, annualized. A 25% volatility portfolio can easily be up or down 25% in a normal year. Your profile sets a ceiling on it.
Maximum drawdown
The worst peak-to-valley loss over a period. If a portfolio fell from 100 to 65, the drawdown was 35%. Recovering from deep drawdowns takes disproportionately long: a 50% loss needs a 100% gain.
Sharpe ratio
Return earned per unit of risk, above a risk-free rate. Two portfolios with the same return are not equal if one took twice the risk. We optimize on risk-adjusted terms, never raw returns.
Diversification
Assets that do not move together smooth the ride. The optimizer measures this with correlations and a diversification ratio, and caps how much any single asset or sector can weigh.
What the quantum part does
Choosing which K assets to include out of N candidates is a combinatorial problem (QUBO). We solve it with quantum-inspired annealing today, and the same interface accepts QAOA circuits on real quantum backends. It selects assets — humans decide whether to invest.
Why we never recommend day trading
Frequent trading multiplies costs and taxes, and the evidence on retail day-trading outcomes is consistently poor. Quantfolio only proposes hold, rebalance, reduce or increase — on a quarterly-to-yearly cadence.