Definition and Application
The New Project develops advanced methodologies and quantitative tools for stock market analysis and portfolio optimization.
Our primary objective is to enhance the predictability and profitability of private investment portfolios. We achieve this through a proprietary portfolio evaluation framework called "3S Indexation." This methodology enables investors to construct, rebalance, and optimize asset allocations (stocks and ETFs) while evaluating broader stock market trends.
The visual output of this model is the Stock Set Signature Index (3S Index).
Unlike traditional market-cap-weighted benchmarks, the 3S Index introduces a fundamentally different logical framework, establishing it as a next-generation market indicator.
Core Features
The 3S Index is engineered specifically for self-directed private investors. Key characteristics include:
Price-Weighted Framework: Modeled similarly to the Dow Jones Industrial Average, the index is calculated based on asset share prices.
Dual-Variant Calculation: It factors in both the price and position size of each asset, utilizing two complementary metrics: 3S Index iS and 3S Index iM.
3S Index iS (Primary): Used to analyze and evaluate general trends of both the stock market and the investor's portfolio.
3S Index iM (Complementary ): Tailored to the unique allocations of an individual portfolio. The iM variant serves as an equal-weighted reference model (assuming identical capital allocation across all assets).
Unified Analytics: The index operates alongside the NP Input and NP Activity indicators to form a comprehensive analytical platform.
Note: The proprietary calculation methodology for the 3S Index is currently pending release.
Objectives and Use Cases
The primary function of the 3S Index iS/iM is the construction and optimization of investment portfolios.
By utilizing this framework, private investors can index their personal holdings to establish a Stock Set Signature, isolating both External and Internal Trends for deeper analysis.
Because the underlying structure of most traditional benchmarks resembles a structured basket of assets, the 3S Index iS/iM can also scale to evaluate entire markets (such as the US equities market). Monitoring the dynamics of the 3S Index allows investors to identify macro market tops and bottoms.
This predictive capability assesses structural market prospects and operates independently from lagging technical indicators like "overbought" or "oversold" conditions.
The 3S Index iS/iM is expressed as a relative value. It behaves similarly to a financial oscillator, making data visualization and trend analysis highly intuitive.
Target Audience
The 3S Index iS/iM was developed by a private investor specifically for private investors. It is designed to maximize risk-adjusted returns on stock and ETF allocations.
Practical Applications
Investors can leverage the 3S Index iS/iM for three primary functions:
Portfolio Construction: Building new stock and ETF portfolios with a systematic assessment of their forward-looking prospects.
Portfolio Diagnostic: Analyzing existing holdings to evaluate current momentum and structural health.
Scenario Modeling: Simulating rebalancing strategies, component swaps, or volume adjustments to assess the potential impact on portfolio performance.
Additionally, the index serves as a macroeconomic tool to gauge broader equity markets. While it cannot be applied directly to spot FX or currency markets, investors can evaluate fixed-income and currency trends by applying the index to specialized Bond and Currency ETF baskets.
Methodology Notes
Strategy First: Successful indexation requires a clear initial investment thesis. Once your criteria and asset basket are defined, 3S Indexation validates the quality and quantifies the prospects of the strategy.
Dynamic Rebalancing: When data updates occur—either through price refreshes or structural component revisions—the entire index dynamic shifts. This real-time adaptation reflects evolving market regimes and serves as a critical focus for analysis.
Comparative Analysis: To unlock the full potential of this tool, investors should benchmark the 3S Index iS/iM dynamics of their personal portfolio against the 3S Index iS/iM of the broader market. This can be done via visual chart overlay or by calculating the 3S Index Balance .
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