Release: Proton Version 1.5

We are excited to announce the release of version 1.5 of the Proton API, as part of Hydrogen’s Atom offering. Check the details below to find out what’s new!

New Services

Version 1.5 adds three new services to Proton’s Simulations suite:

1. POST /portfolio_what_if: The Portfolio What-If tool offers the ability to assess how changes to portfolio composition (such as adding or subtracting a holding, or altering the weights) would affect the risk and return characteristics of a portfolio.
2. POST /sensitivity_analysis: Sensitivity Analysis simulates a portfolio’s response to changes in a specific economic factor. This can be helpful in evaluating and better understanding a portfolio’s exposure to the change in question (like a spike in European stock prices, for example).
3. POST /scenario_analysis: Scenario Analysis simulates a portfolio’s response to combinations of factors. This can be helpful in evaluating and better understanding a portfolio’s exposure to various economic environments (like a period of strong US dollar movements and declining inflation rates, for example).

New Parameters: Goals

Two new parameters have been added to all services in the Goals module:

• adjust_for_compounding — If true, adjust periodic deposit amounts for compounding based on compounding_rate.
• compounding_rate — The annualized rate to apply between periods when adjust_for_compounding is true.

The combination of these parameters help to approximate a compounding effect on deposits for specific request configurations (namely, when a deposit_frequency is shorter than the goal’s horizon_frequency). This new features allows Goals simulations to better reflect the impact of ongoing, frequent deposits over time.

Bug Fixes

Version 1.5 institutes a series of bug fixes across the platform:

• /backtest: Enabled requests to run successfully with fluctuating model securities.
• /mvo: Enabled the service to return successful frontier portfolios when one frontier point encounters an error.
• /mvo: Adjusted request handling to properly reflect security asset class data as optional.
• /portfolio_optimization_score: Fixed a bug in which rates of return were incorrectly annualized in certain cases.
• Standardized the impact of inflation across Financial Planning calculators.
• Changed Goals allocation services to correctly use geometric mean instead of arithmetic mean when using the “create” allocation method.

Please see the Proton Documentation for additional information.