Risk management for any business is something to take seriously because any degree of risk set against the business could cause trouble. Thankfully, there are a lot more companies and organizations that can assist those businesses in assessing their finances and investment opportunities.
Zehnlabs offers institutional-grade investment strategies for the everyday investor. In this review, we’ll take a closer look at what’s on offer, what their pros and cons are to using the service, and whether they’re a beneficial opportunity for your business in 2025 this year.
About Zehnlabs
As described by the company, Zehnlabs democratizes institutional-grade investment strategies and makes them available to all sophisticated retail investors who are looking to take a proactive role in managing their financial future.
With proper risk assessment in place, there are plenty of opportunities in the market, all of which Zehnlabs can assist with.
Zehnlabs positions itself as offering superior returns with tactical asset allocation. It’s described as a learnable and systematic approach that doesn’t rely on day trading or stock picking.
The approach that Zehnlabs offers is designed to help minimize systematic risk with its hedging techniques. Every strategy is backed by over a decade of historical backtesting and updated daily performance reports.
It also allows the business to stay in control, receiving rebalancing alerts via private Telegram channels.
Pros and Cons of using Zehnlabs
There are a number of pros and cons that are worth thinking about before using a company like Zehnlabs. Let’s take a look at the benefits of using Zehnlabs first and foremost.
Multiple strategies available
Investors can choose from various TAA strategies, all offering different risk profiles and management complexity levels. This will help to match your goals and preferred risk tolerance. That way, you can move forward with any financial investments or decisions with confidence that it’s the right fit for your business.
Transparency in performance
With detailed backtested performance reports, as well as execution metrics updated daily, the company offers plenty of insight and detail that helps provide transparency in your performance as an investor.
Viewing quantitative analysis that has over ten years of historical data is publicly available, so no stone is left unturned.
Timely alerts
Zehnlabs offers timely alerts through rebalancing notifications that are updated via private Telegram channels. This means you can execute trades in your own brokerage account without any delay.
Control of your account at all times
For any investment opportunities, having control over your account at all times is important. We, Zehnlabs, don’t require access to the brokerage accounts. You are the one who remains in complete control over assets.
A free strategy is available
A great benefit of Zehnlabs is that they offer a free strategy so that you can experience the company’s approach. It’s a great way to see how tactical asset allocation works before signing up for their premium subscription. It’s a beneficial opportunity to try a free strategy first.
Plenty of educational resources
Zehnlabs offers plenty of educational resources that can be useful when learning everything there is to know about financial investment strategies. From a comprehensive FAQ page to articles, videos, and a glossary of financial metrics, there’s a lot that can help to educate yourself on these topics.
Cons of using Zehnlabs
Are there any downsides to using Zehnlabs? Of course, for investment strategy platforms, there’s likely to be some cons of using them. Let’s take a look at the disadvantages that come from using a platform like Zehnlabs.
Backtests are not entirely equal to performance
The platform does show solid back-tested returns. However, in reality, market conditions often shift, trades get delayed, and customers may not be able to execute chunks at exactly the right time to benefit them.
So it’s important to realize that although they do showcase big returns, it might not always be the guaranteed jackpot that you were expecting.
You need a lot of discipline and time to act on the alerts
When it comes to the rebalancing alerts, you require a lot of discipline in order to act on these alerts, as well as time, which is not always available.
Because you need to execute trades yourself, it requires you to be active and pay attention to the alert messages as soon as they come in. If you’re an investor who simply invests and forgets about it, then this may be a downside that some users have mentioned.
The benefits of using investment strategies for retail investors
There are a number of benefits to using investment strategies, especially when it comes to retail investors specifically. Here are a few ways that it helps to utilize investment strategies.
Goal alignment
A clearly defined strategy helps to serve as a personalized blueprint that ensures your investment decisions will align with measurable financial goals.
Risk management
Strategies that emphasize diversification help to spread risk and mitigate the impact that comes from poor performance on any single asset you’ve invested in.
Enhanced returns potential
While all investments often carry some level of risk, historical data shows that long-term investment and strategy in assets can help to outpace inflation and generate significant wealth over time.
Disciplined decision making
A set strategy helps investors to avoid impulsive or emotional reactions to short-term market fluctuations. This discipline is a crucial one for the long-term success of any assets you invest your money into.
Cost and tax efficiency
Many strategies will come with passive investment approaches. This can often result in lower fees and potentially smaller tax liabilities from capital gains distributions.
Simplicity and accessibility
Certain strategies offer a straightforward and accessible way for retail investors to participate in investment opportunities on the market, without the need for extensive financial knowledge.
Access to professional management
For those who prefer a hands-off approach, certain investment opportunities come with professional management, which takes the pressure off having to do anything yourself.
While Zehnlabs is a service that you control yourself, there are some great benefits to using the platform. For retail investors, it’s worth giving it a go, but the educational resources are worth reading up on.
