Using Technology to Invest Smarter
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Investing doesn’t have to be a gamble
It can be grounded in strategies that have stood the test of time, like Dollar Cost Averaging and Value Averaging. These reliable methods have long helped investors manage risk and build wealth with discipline.
But what happens when you pair them with modern technology?
This is the story of how 3 brothers, Brett, Ben, and Mark Lyman - all engineers - used technology to transform these trusted approaches into something innovative, precise, and automated — culminating in impressive real-world results.
The Reliable Starting Point: Dollar-Cost Averaging and Value Averaging
Dollar-Cost Averaging (DCA): This classic strategy involves investing a fixed amount at regular intervals, regardless of market highs or lows. By spreading out purchases, DCA minimizes the impact of volatility, offering a steady, dependable way to grow wealth over time. This strategy is so deeply trusted by the industry that nearly every retirement account utilizes this exact strategy.
Value Averaging (VA): A more dynamic cousin of DCA, value averaging adjusts investments to follow a target growth path. When the portfolio exceeds this path, excess gains are sold. It’s a disciplined way to capture profits during market rises and spikes.
These strategies are pillars of reliability — structured, unemotional, and proven. But we saw potential to push them further with technology.
Discovering the strategy with Quantitative Analysis
Our journey began with a deep dive into all available historical market data from 3x leveraged ETFs and major indexes. Using quantitative analysis, we discovered an innovative blend of DCA and VA to identify 3 parameters within the DCA and VA framework.
Daily investment amount: Using DCA, how much should we invest daily?
Daily growth target: Using VA, when do we sell excess profits?
Overall growth target: At what growth point do we sell everything, capture all the gains, and start over?
We founded LymanWealth and named our strategy Quantelligent™: DCA drives daily investments into leveraged ETFs, VA triggers sales to capture short-term gains during market volatility, long-term growth targets trigger a sale of the entire position to capture all realized gains, and captured profits are reinvested to fuel compound growth.
But the discovery of Quantelligent was just the start; refinement was where technology truly shone.
Finding “Clusters of Profitability” with 3D Modeling
To optimize the Quantelligent method, we turned to 3D scatter-plot analysis. Imagine a 3D graph where each axis represents one of the three parameters (DCA buys, VA sells, overall growth targets). Every point is a unique combination, with its brightness reflecting historical profitability.
Bright clusters — or "Clusters of Profitability" — emerged, showing parameters that consistently delivered strong returns.
By focusing on these clusters, we fine-tuned Quantelligent’s settings to balance growth and stability. LymanWealth revisits this analysis as needed, ensuring the strategy adapts to shifting market dynamics. This tech-driven refinement elevated these time-honored and reliable strategies into a precise, data-driven approach
Automating with Confidence
Trusting the insights from our quantitative analysis and 3D models, we took the next step: Automation! Technology allows LymanWealth to execute Quantelligent seamlessly — investing daily via DCA, selling excess gains using VA, exiting positions at overall growth targets, and reinvesting profits for compound growth. Automation removes human error, bias and emotion, letting the strategy run with the precision the data demands.
For 3 engineers, this was an answer to efficiency and confidence in a process rooted in reliable strategies, enhanced by rigorous data analysis.
The Results: A Testament to Technology
The results are in for 2024, when LymanWealth’s Quantelligent Strategy — fully automated and operating within these “Clusters of Profitability” — achieved a remarkable 65.6% return†, far outpacing the S&P 500’s return of 24.89%. With a beta of just 1.97, using the CAPM formula this generates an Alpha of 21.74 - proof you don’t need sky-high risk to see sky-high rewards.
Past performance isn’t a promise of future results, but these numbers show what’s possible when technology enhances trusted strategies.
† For all investors who joined prior to 2024
