Two tax-aware strategies, explained from first principles.
LotWise is for individuals, practitioners and advisors who want to learn how two tax-aware strategies are implemented: tax-aware direct indexing and tax-aware long-short. Both are built on one optimizer that treats taxes as a cost, not a footnote. It harvests losses one tax lot at a time, respects the 30-day wash-sale rule, and holds closely correlated substitutes so the portfolio stays near its benchmark while it does. Each strategy page sets out the objective, the constraints and the settings that change its behaviour.
Across benchmarks, and across market regimes.
Published results come from a historical backtester, run against benchmark indices and over many start years, so a result reflects different market conditions rather than one favorable window. Every run is deterministic and reproducible from its manifest, a record of the code, data and settings behind it. An independent validation harness then checks each run before a number is reported: for look-ahead bias (using information that was not yet available), survivorship bias (leaving out companies that later disappeared), wash-sale leaks and lot-accounting drift.
Real-data results, with a paper.
Backtest results on real data will be published with a forthcoming paper on SSRN, a preprint server for research papers. The paper describes the methodology and compares a CPU solver with a GPU solver on real data. Until then, the site explains the method, and each tool shows results computed on sample portfolios.