Investment Decision-Making Technology

individual advisor, financial advisor, brokerage


The IDT investment decision-making technology algorithms (IDT) that provides investment advisors and individuals at all expertise levels the opportunity to manage their investment portfolios with a high performing system using the beginning stages of artificial intelligence.  

Managing investment portfolios has never been easier or more productive.   All that needs to be done is use your brokerage account management platform to make the recommended transactions using our subscription-based IDT Decision-Making Technology.  You simply provide IDT with a pool of mutual fund, ETF and/or stock symbols that you want our algorithms to analyze. We will create your portfolio holdings and recommend when you should make changes – usually around once a month or less.  It is that simple 

The technology provided by IDT Software can set you apart from your competition by helping you produce above benchmark performance for your advisors.

There are many problems that individual investors are being forced to face due to regulatory changes required by governmental agencies. Here are a few situations that individual investors are being faced with today:

  • Employers have been and still are dissolving the traditional retirement plans where they contributed to your retirement account and managed the account assets while guaranteeing you a set income until you and your spouse died. These were called pensions.

  • These pensions were replaced with 401K plans where you contributed what you wanted to or could contribute.  You also had to manage that account while you were working and afterwards until you and your spouse died. Most people have not been able to manage their account due to a lack of time or expertise.

  • People could also contribute to individual retirement accounts but still lacked the expertise to manage them effectively.

  • People are now being given a more complicated option to manage their retirement accounts called a “brokerage window”.  This opens up their 401-K investment options to an unlimited universe of mutual funds, ETFs and individual stocks.  The expertise level and time requirement to manage these accounts have now risen to a much higher level.

  • This dilemma doesn’t stop when one retires.  It continues until the managing spouse dies or becomes physically or mentally incapable.  Not to mention most people want to spend retirement doing something else besides worrying about their investment portfolios.

  • Employees are not the only ones affected by these situations.  Others are business owners who may have sold a business or people who had savings or inheritances to manage.

  • Many people have turned to investment advisors or a CFP®, which created another expense of between one percent and two and a half percent.    Receiving advice about how to manage people’s retirement accounts has been difficult since the Department of Labor has restricted professionals from advising concerning retirement accounts with hindering regulations.

  • The difficulty for individuals has been netting an investment return even close to the market return after all the fees.

  • Many have been seduced into becoming a day-trader.  Most have not been successful, some devastated and most all of them had to commit their entire waking hours to their trading and research. Stress has destroyed their health, relationships and family of way too many.

  • There have been a large number of experienced advisors who have chosen to get out of the business and have sold their practice to younger advisors who do not have the investment management experience needed. Therefore, they have outsourced the management of investments to third-party money management companies at a high fee for the client.  Sooner or later the advisor will be forced to cut their fees to meet new regulations and struggle to remain in business.

  • Good advisors may reach a success level where the time they spend on performing market and investment research to manage their portfolios is so great that it forces them to spend less time building client relationships and finding new business.

  • Due to their own human emotions, individuals as well as investment advisors often miss prime opportunities to buy and sell investments. 

  • Most individuals as well as investment advisors would love to produce portfolio returns that exceed the underlying portfolio benchmarks but do not have the time, emotional control or tools to do so.

We, at IDT Software, desire to help you eliminate any situation you face that would keep you from being the most productive, profitable, producing long-term benchmark meeting or exceeding investment returns and experiencing the most enjoyable lifestyle. The investment decision-making technology (IDT) can deliver this by using five algorithms to assist you in managing investment portfolios. We use five algorithms to do this.  They are:

  1. The investment ranking algorithm – It ranks the investment pool assets (mutual funds, ETFs and/or stocks) that you have selected from the most appropriate to the least.  These are the investment assets you provide to IDT as the pool of investments for the algorithm to use in building your portfolios.

  2. The selection algorithm – It determines which asset from the ranking is the most appropriate to be purchased. Even though an asset may be highly ranked, it may not be available for purchase due to, for example, being already at an overbought level. Our objective is not to buy and sell low.

  3. The profit-taking algorithm - Obviously this one is the profit-taking strategy. When an investment asset start rolling over we want to take profits rather than ride it back down.

  4. The sell algorithm - Other than the profit-taking algorithm, there are several other reasons that this algorithm uses to produce a sell signal.

  5. The replacement algorithm - Sometimes an investment asset lags in its performance while other investments are producing better returns. This algorithm will determine if an investment needs to be replaced and which investment needs to be the replacement.

The IDT program calculates the correlated standard deviation of your portfolios every night so that you can be assured that the risk levels are appropriate for your risk tolerance. Once you provide IDT with the list of symbols for the investment pool, the algorithm will build the positions for your portfolios.  We will then perform a three-year performance back test. If your pool of investment assets rank in the top quartile of three-year performance and is diversified among the MorningStar asset categories, your long-term performance should beat the benchmarks. Your brokerage company staff can assist you in completing this selection.  

Once you determine that IDT meets your needs, you can activate the program.  The algorithms run nightly and sends you a portfolio report before the market opens that includes any sell or buy recommendations.  You then make the transactions on your platform.  We are NOT a ROBO platform.  

Due to the advisory fee savings, increased portfolio performance that usually meets or exceeds the underlying LONG-TERM market benchmarks and reaping the cost savings of not having to do market research, using the investment decision-making technology algorithms is a no-cost venture. In fact, in many ways, you should come out way ahead, not counting better family relationships and more free time for fun.

IDT Software is a subscription-based software product. We are based in Alabama and are not required to register with the state of Alabama or with the SEC due to not offering to select any assets, providing any financial advice or having any care, custody or control of your assets. If you would like to use an adviser that uses the IDT Software technology for managing your portfolio, we will be glad to offer you a list to choose from.  


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