How do the main elements of Fincanva work together?

Fincanva is built to help you design, test, and understand investment strategies without needing to master everything from day one. Instead, you can focus on how each element connects with others to form a complete, intelligent investment process. Here's how the core components relate and work together.

• Models = Strategy Blocks
  Models are individual investment strategies. Each model defines how to select assets, apply filters, and allocate capital within its own structure. Think of models as the tactical components of your investment plan.

• Portfolios = The Master Plan
  A portfolio brings together multiple models into one cohesive strategy. It’s where you decide how to allocate capital across different models to reflect your overall goals and risk preferences. It acts as your overarching investment blueprint.
  

• Allocation Methods = Capital Distribution Tools
  Both portfolios and models have their own allocation methods.

  • In a portfolio, allocation methods determine how capital is distributed across the models.

  • In a model, allocation methods determine how that model’s capital is distributed among individual assets.
    

• Risk Settings = Control Mechanisms
  Risk settings act as safeguards within both portfolios and models. They can automatically adjust exposure or shift capital based on market conditions or predefined rules to help protect your investments. Risk settings are available for both models and portfolios.

• Simulations (or backtest) = “What If” Tests
  Simulations (or backtest) let you test your portfolios and models against historical data. This helps you see how your strategies would have performed, offering valuable insights before putting any real money at risk.

• Output = Your Insights
  After running simulations, Fincanva provides rich output data—performance metrics, drawdowns, risk analytics, and more—so you can evaluate your strategies and make smarter decisions.

Each element plugs into the next: simulations test your portfolios (which contain models), allocation methods shape how capital flows, and risk settings help you manage it all. And don't worry—you don’t need to learn everything at once. Start with what you need now, and explore deeper as your confidence grows.