How to Use AVI Strategies

AVI strategies are designed for investors who want to rely less on emotions and forecasts and more on predefined rules.

Working with a strategy consists of three simple steps.

1. Choose a Strategy

First, you need to choose the AVI strategy that you want to follow.

Different strategies have different characteristics:

Some are focused on achieving higher capital growth.
Others are designed to reduce risk.
Some place a greater emphasis on dividend income.

Before making a choice, it is useful to review how a strategy has performed over a long period of time.

Rebalancing Every 12 Months

For the period of 312 months from 01/01/2000 to 01/01/2026	INDIGO	GREEN	YELLOW	POWER	EMERALD	STABILITY	AVICORE	S&P 500
Average Annual Return (CAGR):	14,45%	11,38%	19,05%	23,99%	23,10%	15,98%	21,47%	8,07%
Maximum Drawdown (monthly measurements):	-46,46%	-56,09%	-59,02%	-47,52%	-25,48%	-30,15%	-33,43%	-50,82%
Standard Deviation (Risk):	22,70%	30,58%	32,00%	29,37%	16,27%	13,10%	21,09%	17,19%
Sharpe Ratio (Return per Unit of Risk):	0,61	0,43	0,65	0,84	1,30	1,05	0,97	0,38
Best Year:	56,96%	69,89%	80,82%	95,92%	53,58%	40,81%	61,28%	32,39%
Worst Year:	-34,37%	-45,78%	-42,43%	-38,19%	-14,30%	-18,69%	-20,25%	-37,00%

Rebalancing Every 3 Months

For the period of 312 months from 01/01/2000 to 01/01/2026	INDIGO	GREEN	YELLOW	POWER	EMERALD	STABILITY	AVICORE	S&P 500
Average Annual Return (CAGR):	15,23%	14,26%	20,11%	23,35%	22,73%	17,51%	22,91%	8,07%
Maximum Drawdown (monthly measurements):	-49,22%	-63,30%	-64,73%	-48,44%	-31,87%	-30,58%	-33,92%	-50,82%
Standard Deviation (Risk):	23,58%	32,47%	39,90%	29,03%	17,99%	12,58%	22,38%	17,19%
Sharpe Ratio (Return per Unit of Risk):	0,63	0,50	0,57	0,83	1,18	1,21	0,99	0,38
Best Year:	58,25%	84,95%	154,58%	89,01%	52,23%	42,62%	65,79%	32,39%
Worst Year:	-36,68%	-45,07%	-43,21%	-39,30%	-19,79%	-18,67%	-23,04%	-37,00%

These metrics help investors understand what kind of performance and behavior can reasonably be expected from a strategy over a long-term investment horizon.

2. Build Your Portfolio

After selecting a strategy, open the current stock list on our website and purchase all stocks included in that list.

Ideally, your capital should be allocated approximately equally among all positions.

It is important to understand that the strategy stock list is already a complete investment portfolio, not a collection of ideas from which investors should make their own selections.
The strategies were tested as complete portfolios.

Therefore, changing the composition of a portfolio:

May improve performance.
May reduce performance.

No one can know this in advance.

Historical research and real-world portfolio management results relate specifically to the original version of each strategy.

3. Rebalance Your Portfolio

After the rebalancing period specified for a strategy has passed, open the updated stock list and adjust your portfolio accordingly.

Typically, this process involves:

Selling stocks that are no longer included in the list.
Adding newly selected stocks.
Redistributing capital approximately equally among all positions.

The update frequency depends on the strategy.

For example, if a strategy is updated every three months, this procedure should be repeated every three months.

Using Multiple Strategies

Many investors use several AVI strategies simultaneously.

In this case, it is convenient to treat each strategy as a separate portfolio.

For example:

INDIGO Portfolio
STABILITY Portfolio
DIV Portfolio

This approach helps diversify risk and makes the overall investment portfolio more stable and less volatile.

The Main Principle

AVI strategies are designed for long-term investing.

Their strength lies not in individual stocks but in the consistent application of the strategy’s rules.
Therefore, the core principle is simple:

Choose a strategy → Build a portfolio → Rebalance regularly → Maintain discipline.

This is how the statistical advantages of a strategy are realized over a long-term investment horizon.