How Robo Advisors work

Robo advisors are digital platforms that act as asset managers. They use algorithms and machine learning to make investment decisions for the user without the involvement of a human advisor.

Robo Advisor users specify their investment objectives, risk profile and financial resources, and the Robo Advisor then develops an investment strategy for them. This may, for example, consist of ETFs (exchange-traded funds) that offer broad diversification across different asset classes. The user can then decide whether or not to implement the Robo Advisor’s recommendations.

• Algorithms determine trading processes
• Split-second decision as a tactical advantage
• AI (artificial intelligence) is on the rise

Are more cost effective than traditional asset management

One advantage of robo advisors is that they are typically less expensive than traditional wealth management services because there are no human advisors involved and the cost of running the platform is lower. However, they may not provide the same personalized advice and guidance as a human advisor.

You can find good providers here:

Algorithm of a financial tool

What is an algorithm?

In financial planning, algorithms are computer-based computational methods used to develop investment strategies, predict outcomes, or make decisions. They can be used, for example, in robo-advisors or other financial planning tools.

Algorithms can be used in a variety of ways, depending on the task they are intended to perform. Some examples are:

1. Portfolio optimization
2. Risk Management
3. Trading

Portfolio optimization

Algorithms can be used to develop the ideal portfolio for a user based on their investment goals, risk profile, and financial resources. They can also be used to monitor and adjust the portfolio over time.

Risk Management

Algorithms can be used to analyze market data and predict risk to minimize the risk of investment decisions.

Trading

Algorithms can be used in trading platforms to automatically execute trades based on predetermined rules or on the analysis of market data.

Algorithms can help automate and optimize processes and provide new insights from large amounts of data. However, they can also contain errors or be influenced by human bias, which is why it is important to monitor and verify them carefully.

Machine learning (AI) of financial tools

What is machine learning (AI)?

Machine learning is a subfield of artificial intelligence (AI) that deals with the development of algorithms that can learn and improve on their own. This is done by training the algorithm on large amounts of data to solve specific tasks.

In machine learning, the algorithm is not explicitly programmed to perform a specific task, but learns on its own by recognizing patterns in the data and reacting to them. The more data the algorithm has available, the better it can learn and the more accurate its predictions become.

Machine learning is used in many areas, such as speech and image recognition, prediction of results, personalization of services, and decision making. It can help automate and optimize processes and provide new insights from large amounts of data. However, there are also ethical issues and challenges that need to be considered in the context of machine learning.

How useful are robo advisors?

Using a robo advisor may make sense for some people, while it may be less appropriate for others. Some factors that should be considered are:

1. Investment Objectives
2. Risk profile
3. Financial means
4. Personal preferences

Your investment goals: Return on investment or low-risk retirement provision

Robo Advisors can be suitable for different investment objectives, such as wealth accumulation, income optimization or risk diversification. If the user has clearly defined investment goals, a Robo Advisor can be a good way to pursue them.

Your risk profile: currency, share, ETF, bonds & Co.

Robo advisors usually take the user’s risk profile into account when developing the investment strategy. However, if the user has a high risk appetite or special investment needs that require individualized advice, a human advisor might be a better choice.

Your financial means: Equity capital

Robo advisors tend to be less expensive than traditional wealth management services because there are no human advisors involved and the cost of running the platform is lower. They may therefore be more suitable for people with smaller assets or for those who do not want to pay high fees for wealth management services.

Your personal preferences

Some people prefer to have a human advisor who can personally assist them and give them personalized advice. Other people may prefer to invest on their own and rely on the recommendations of a robo advisor.

It is important to note that no investment option is suitable for everyone and that it is important to understand one’s investment needs and goals before making a decision. It can be helpful to seek advice from a financial advisor or other expert to find the solution that best suits your needs.

More about the functions and possibilities: 20 Robo Advisor Expert Tips

Classic asset management: tasks

What does a classic asset management company do?

A traditional wealth management service is one in which a financial advisor or team of financial advisors makes investment decisions for a client and manages the client’s assets accordingly. The advisor or team selects the investment products in which the client should invest and adapts the investment strategy to changing market conditions.

Private investors, institutions or companies

Asset management can be offered to different types of investors, such as private investors, institutions or companies. It can be tailored to different investment objectives, such as asset accumulation, income optimization or risk diversification.

Individual consulting vs. higher costs

One advantage of traditional asset management is that the client has an individual advisor who looks after their investment needs and can give them personalized advice. However, the costs of asset management are usually higher than those of robo advisors because human advisors are involved.

Development of investment strategies through robo advisors

The development of investment strategies by Robo Advisors is usually based on the use of algorithms and machine learning. The Robo Advisor collects information about the user, such as their investment objectives, risk profile and financial resources, and then uses this information to develop a suitable investment strategy.

1. Selection of investment products
2. Diversification of your portfolio
3. Rebalancing strategies

Selection of investment products

An important part of the investment strategy is the selection of investment products in which the user should invest. These can be, for example, shares, bonds, funds or ETFs. The robo advisor can then select appropriate products that meet the user’s investment objectives and take into account his risk profile.

Diversification of your portfolio

Another component of the investment strategy can be diversification, i.e. spreading the assets across different asset classes and products. This can help to minimize risk and increase the chances of return.

Rebalancing strategies

The Robo Advisor can also develop appropriate rebalancing strategies to ensure that the user’s portfolio remains in line with their investment objectives and that no asset class is overweighted.

Overall, Robo Advisors offer a convenient and cost-effective way to develop and implement an investment strategy without relying on the assistance of a human advisor. However, they may not provide the same individualized advice and guidance as a human advisor.

Anyone who, independently of robo advisors, is also interested in the major, general AI chatbots such as ChatGPT, Claude or Gemini will find an easy-to-understand comparison of AI models on lukinski.com.

Conclusion: Automated Trading with Robo Advisor

Using a robo advisor may make sense for some people, while it may be less appropriate for others. It’s important to understand your own investment needs and goals before making a decision, and to seek advice from a financial advisor or other expert if necessary. Robo advisors may be better suited for people with clear investment goals and smaller assets who do not want to pay high fees for wealth management services. However, they may not provide the same personalized advice and guidance as a human advisor.

Not investment advice or a recommendation to buy.

All information provided here does not constitute investment advice or a recommendation to buy. All statements are my general published opinion. I have obtained the information from my experience as a private investor. This experience report cannot and is not intended to replace personal investment advice from professionals.

Heating with electricity through infrared rays

When building a house, there is always the question of the right heating system. Here there are many variants that need to be considered, and infrared heating is one of them. The model shows many advantages that adapt well to different living situations. But under what conditions is the installation of infrared heating worthwhile and how exactly does heating with electricity actually work?

Pleasant and healthy heat through infrared rays

The radiation of the infrared heating works differently than other heating systems, because the radiation does not warm the air in the room, but directly the body. This includes not only the human body, but also walls, ceilings or floors and even the furniture. The principle can be compared to sunbathing in winter. Due to this technique, the heat is already perceived by the body as pleasantly warm at low temperatures. This means that only low temperatures are necessary, thus saving electricity and heating costs. Another advantage of infrared heating is that the rooms do not have to be preheated for a long time so that the body is pleasantly warm. This provides comfortable warmth and thus increases the well-being and health.

Installing infrared heating – low installation work & low costs

The installation for an infrared heater is very simple. All that is needed are the heating elements in the room and also a power socket nearby. Other heating systems require pipes that need to be laid throughout the house, as well as boilers, hot water tanks and the radiators that need to be connected. This incurs installation and material costs and labour wages for tradesmen. With infrared heating, depending on the model (wall-mounted, ceiling-mounted, floor-standing or suspended), no or only minimal installation work is required. The costs for installation are therefore significantly lower than the costs for the installation of other heating systems.

The durability of infrared heaters also compares favorably to other heating systems. Most heating systems require regular maintenance to maintain performance. This incurs not inconsiderable costs for repair and maintenance, which should be included in long-term planning. Infrared heating is generally considered to be very cost effective in this area. It has a long life and does not require maintenance, as it has a very simple structure and the few components are not susceptible to damage.

Installing infrared heating as a supplement to other heating systems

Especially in old buildings, infrared heating offers a good addition to already existing heating systems. When expanding within an already existing heating system, it is usually difficult to lay new pipes, as this is time-consuming and expensive. An alternative is offered here by infrared heating, which can heat additional rooms in combination with the original heating system, and this simply at the socket. The low installation effort and the low initial costs attract builders and property owners. The low maintenance costs compensate for the relatively high operating costs and speak for infrared heating. But also with the occasional heating of rooms the infrared heating is a good alternative. The short time for preheating and the individual use of the system is advantageous for heating certain rooms only rarely or on certain occasions.

Installing infrared heating as the sole heating system

In new construction, heating alone with infrared heating is not a problem. The modern insulation that is installed during construction provides sufficient heat in the rooms. In old buildings, the whole thing looks a little different. Here the infrared heating is worthwhile as a sole heating system only under certain conditions, so that the heat is not lost, the building must have a certain insulation. The better the insulation of the building, the more lucrative the use of infrared heating. When renovating and refurbishing an old building, it is no problem to strengthen the insulation and install an infrared heating system.

Tip! Heating system in comparison

Save up to 55% costs (heat energy)? Tip! Not only already, but practically? Save energy with the heating system in your property. Use the next time for renovation or your upcoming new building. Here you will find our guide heating systems: solar, oil, gas, heat pump, pellets in comparison and as extra, state subsidies. Continue reading here:

• Heating system: comparison

Advantages and disadvantages at a glance

Advantages of infrared heating

Infrared heating is a worthwhile alternative to other conventional heating systems and offers a number of advantages for both old and new buildings.

Rapid feeling of warmth throughout the room despite low temperatures

Infrared heating warms rooms not through the air, but by infrared rays directly warming the body. The body stores this heat and carries it around with it, whereby the heat is perceived as the same in the entire room. Due to the heat storage in the body, low room temperatures are sufficient to create pleasant comfortable temperatures.

Healthy indoor climate for allergy sufferers

Unlike conventional heating systems, infrared heating does not stir up dust, which keeps the dust concentration in the air low. For dust, animal hair but also pollen allergy sufferers, the air is easier to breathe and also asthmatics can breathe easier. A spreading of allergy substances in the room is avoided, which leads to less dust spreading and thus cleaner air.

Positive effect on the body

The infrared heater warms the body through radiant heat from IR-A infrared radiation. This radiation penetrates a few millimetres into our skin and thus increases the tissue temperature. We feel a pleasant warmth through this technique, comparable to sunbathing. The increased tissue temperature dilates the blood vessels and promotes blood circulation. Comparable to a red light treatment, the infrared rays can have a tension-relieving effect and thus be beneficial to health in the case of muscle complaints or back pain.

Variable and advantageous costs

The purchase costs for an infrared heater are very low. Only the heating panels are needed and a power outlet. Compared to other heating systems where many materials and installation costs are incurred, the infrared heating is probably the cheapest in the purchase.

When using an infrared heater, heating costs are only incurred when heating is actually taking place, i.e. only when it is switched on. The less heat is needed, the lower the costs are.

Since the body already feels the low radiant heat of the infrared rays as pleasant and stores them, the heater does not have to run at high temperatures like other models to create a comfortable indoor climate. The operating costs can therefore be kept as low as possible.

Since the infrared heating consists of few and simple components that are not susceptible to malfunctions, the infrared heating has a long life and low maintenance costs.

Disadvantages of infrared heating

But infrared heating also has some disadvantages that property owners and builders need to consider before making the purchase.

High costs for electricity and operating costs

Heating with electricity is comparatively rather expensive. Electricity prices fluctuate constantly, which means that the operating costs for infrared heating also vary. To keep electricity costs as low as possible, the property should have good insulation so that as little heat as possible is lost to the outside.

Carbon dioxide emissions and environmental friendliness

Heating with electricity is not environmentally friendly. It even produces higher carbon dioxide emissions than conventional heating systems. By combining it with green electricity or a photovoltaic system, the eco-balance can be improved, but even then there is still a high environmental impact.

Room temperature difficult to determine

The room temperature is difficult to measure because it is perceived by our own body as warmer than it actually is. The temperature of the room is therefore always somewhat lower than our sensation. Thus, the temperature of the room can be determined but not the temperature we feel.

Heating guide: types, prices & comparison

Heating & Types – The topic of heating is not only interesting for builders, but also for property owners. After all, heaters are not only necessary in a property, they are also required by law. Which types of heating are there, how do they have to be maintained and are there legal subsidies for the construction of certain types of heating or do the costs have to be paid completely by the owner? Especially when building a house or renovating and modernising, the heating system plays a decisive role, because a large part of the later running costs depend on it, for you or for your tenants.

When deciding on a heating system, a number of things need to be considered, as there are major differences. Depending on the property, it must be decided individually which system is best suited to efficiently heat the entire property. The systems differ not only in environmental friendliness, but also in efficiency and price. Solar, oil, gas, heat pump, pellets:

• Heating: Comparison & Costs

Ascendas: share, facts and figures

Ascendas in detail – The current share price and other facts and figures about the company.

Source: Ariva.de

• Buying shares – instructions (direct banks, online trading)
• Shares Dividend – Facts and Figures
• Construction: industry and investment
• Ascendas – Company (external)
• Real Estate Shares – Overview

Share price: 12 months

Invest? WKN, ISIN and symbol:

• WKN: 157700
• ISIN: SG1M77906915
• US Symbol: ACDSF

Here is the current share price with a review of the share price performance over the last 12 months.

Share price: 3 years

Ascendas’ share price performance over the last 36 months.

Facts and figures about Ascendas

• Headquarters: Singapore
• Foundation: November 2002
• Asset size: $12 billion+
• Real estate: 197
• Customer base: 1,490
• CEO: William Tay (since 01/18)

As of 06/20; Source: ascendas-reit.com

Subsidiaries of Ascendas

• Ascendas US REIT LLC
• Ascendas REIT Australia

DAX: Index of the “German economy

The DAX is the most important German share index in trading. It takes into account the performance of the 30 largest and therefore most liquid companies on the German stock market. The DAX thus represents around 80 percent of the market capitalization of listed stock corporations in Germany.

DAX index family

In addition to the DAX itself, the Prime Standard of the DAX index family includes the MDAX, XDAX, TecDAX and SDAX.

• DAX
• MDAX
• XDAX
• TecDAX
• SDAX

Tip. DAX, NASDAQ, Dow Jones, Euro Stoxx. The chart overview to the indices from top indices:

• DAX, NASDAQ, Dow Jones & Co.

DAX Price: Real Time

Here is the current share price with a review of the share price performance over the last 12 months.

Invest? WKN & ISIN:

• WKN: 846900
• ISIN: DE0008469008
• Symbol: DAX

Chart: 3 year review

The DAX in a 3-year review: