ETF Baskets

Allocation and Auto Swap plan

Starting allocation and funding transition

Funding plan: sell down port and buy the three ETF-model baskets. Reduce the existing individual-stock book to its 10% starting allocation and use the reconciled proceeds to fund aaETF, aETF and rETF at 30% each. These are direct stock baskets managed by ETF models, not necessarily exchange-listed ETF ticker purchases.

1. Before staging trades, verify current equity, cash/debt, positions, pending orders and actual book ownership. Establish a dated starting-capital baseline; this page supplies no live trade quantities.
2. Prepare the port sell-down, keeping the intended 10% stock-book allocation. Reconcile confirmed fills and resulting available capital; do not treat submitted orders as filled.
3. Prepare basket purchases against the confirmed 30%/30%/30% budgets and model membership. Check broker buying power, account-wide risk gates and overlapping symbols before execution. A funding shortfall remains a gap; do not silently change the split.
4. Tag each filled share/lot to exactly one book. Preserve protective-order ownership and reconcile total holdings/capital to the broker account. Funding and activation require a separately authorized execution workflow.

These are starting weights. Subsequent gains/losses drift; there is no automatic daily reset to 30/30/30/10. Existing whole-account returns are not retroactively attributed to funded baskets.

Auto Swap and shared risk

Auto Swap applies to all four books, including the three new baskets. Assess candidates, sizing, exits/re-entry and outcomes separately by book; reconcile combined capital, financing, overlapping holdings and protective orders at account level. The planned scope does not prove each book is already funded or activated.

The account-wide debt/equity cap remains 30%. Model Smart Margin is a separate sizing signal and does not override broker limits or this cap. New buys remain blocked while the account exceeds the cap. This document update does not change live settings, activate Auto Swap, or send orders.

Recalculated research simulations

Window: 2025-10-02 to 2026-10-02; 252 sessions. These historical simulations are separate from the live books and do not validate Auto Swap improvements or the combined 30/30/30/10 account plan.

Margin scenario: lagged SPY regime signal, 1.35x / 1.15x / 0.80x; assumed financing 9% APR, ACT/365. This research overlay is not the live Dynamic Smart Margin setting or a broker maintenance-margin replay.

The full comparison includes alternative combinations. Their weights are distinct from the four-book allocation plan.

Coverage and limitations

• Exploratory historical simulation, not live returns or a validated out-of-sample strategy.
• Legacy models retain close-derived signals filled at that same close and daily high/low stop approximations. Execution timing, survivorship and parameter-selection bias remain.
• aaETF: 529/536 cached symbols fully observed (98.69%); incomplete symbols explicitly excluded: CBRS,CTSH,IMC,LIFE,PTN,SHAZ,TEVA. Coverage is a retained data gap, not a complete-universe backtest.
• Smart Margin: prior-session SPY vs 50-session SMA and 20-session momentum; 1.35x/1.15x/0.80x. 9% APR is an assumed scenario rate, accrued on calendar days (ACT/365), not a verified current broker rate.
• Margin overlay scales whole model NAV returns; not a trade-level broker maintenance-margin or position-netting replay. No liquidation, changing maintenance requirements or market-impact model.
• Cash uses rerun unleveraged model NAV. Legacy simulated trades assume 0.10% each-side slippage; no new dividend, tax, fee or corporate-action adjustment is introduced.
• Combinations are initial independent sleeve allocations that drift; no inter-sleeve rebalance/netting. Sharpe uses a 0% reference rate and sample daily deviation; Calmar uses annualized return divided by absolute maximum drawdown.
• 252 simulated sessions plus an explicit pre-run starting-capital baseline; first-session simulated transaction costs are included. SPY buy-and-hold begins at October 2 close.
• cETF and combo_preservation unavailable: old cETF was a straight interpolated curve. Prior 0.00% drawdown is unsupported.
• Hypothetical results do not represent actual trading and may misstate liquidity or execution effects. No representation that any account will achieve similar results. Past performance does not guarantee future results.

aaETF coverage is 529/536 symbols (98.69%); missing symbols remain an explicit gap. cETF and combo_preservation results remain unavailable. No complete-universe or out-of-sample claim is made.

Legal and simulation disclosures

PhoenixAlgos is a financial technology software provider, not a Registered Investment Adviser, Commodity Trading Advisor, or registered broker-dealer. This plan describes software allocation rules and is not individualized investment advice. PhoenixAlgos is non-custodial; assets and execution remain with independent brokers, with which PhoenixAlgos has no affiliation. Trading involves substantial risk of loss.

CFTC Rule 4.41: hypothetical or simulated performance results have inherent limitations. Unlike actual performance records, they do not represent actual trading. Results may under- or over-compensate for liquidity, slippage and other market factors. No representation is made that any account will achieve similar profits or losses. Past performance is no guarantee of future results.