Designed to tactically adjust their holdings to match the current market environment, the Potomac Funds are Built to Conquer Risk®
There are times where you want to be fully invested (risk-on) and times where the risk isn’t worth the reward (risk-off). We believe that superior returns over the long run come from managing the downside.
Our approach is systematic, tested, and disciplined. We do not react to headlines or the “hot” story of the day. Gut feelings and narratives are not part of the process.

Manish Khatta
Co-Chief Investment Officer
Manish Khatta is a quant! A true math geek, he has spent his career creating and refining trading strategies built on mathematical computations and number crunching. He is a staunch believer that investment risk is something that can be contained, and conquered, using quantitative trading systems.
Manish is a lifelong Potomac employee who started with the firm after college and programmed the initial work behind Potomac’s mechanical trading systems. Fast-forward to today, and he now serves as CEO/CIO of Potomac and oversees each silo of the business, which includes Investment Strategies, Mutual Funds, FinTech, and Institutional Research.

Dan Russo, CMT®
Co-Chief Investment Officer
Dan has been in the securities industry for over two decades. He holds an MBA degree in Finance from Fordham University in New York City and a B.S. degree in Finance from Long Island University, C.W. Post. He is also a Charted Market Technician, having earned the right to use that designation in 2012.
He has experience with a wide range of institutional investors, working with them to perform fundamental, technical, and quantitative research to navigate the market and generate actionable trading and investment ideas.
At Potomac Fund Management, his primary roles include conducting technical and quantitative analysis, structuring portfolios of ETFs based on this analysis, and providing ongoing written research for the firm’s financial advisor client base.
How are our funds built?
Our decision making is driven by our algorithmic composite systems which are simply a combination of independently tested market indicators that are great alone, but better together.
Select indicators are only combined into a composite system after running multiple iterations of all the indicators analyzing total gain, probability of success, and drawdowns of each combination.
Each of these iterations has to score highly in all three categories to be included into the composite. We believe that the key to successful risk management is the varied use of multiple, and at times uncorrelated, indicators. If all your indicators follow the same data, then you will always get the same answer.
When developing the composite market system, we wanted to make sure that it was not over optimized which is the downfall of most mechanical trading systems. For example, if you have an indicator that displays tremendous historical returns but only generates a handful of trades over an extended period, it should be ignored due to a limited data set.
Our composite market systems are at the heart of all that we do and are designed to highlight times of risk-on and risk-off behavior in the market.
Research and Data driven
Investment decisions are made based on mathematical formulas and market tested indicators. There is no room for gut feeling.
flexible
allocation
Attempts to find the assets that are outperforming the broader market and are likely to continue to do so.
tool for
diversification
Offers a tool for diversification due to little overlap with traditional indices. It can be a complement to traditional passive strategies.
Global
Opportunities
Our funds can seek opportunities across asset classes, both in the U.S. and globally, including the option to hold cash and Treasuries.
Growth
Potential
Aims to capture long-term growth while attempting to provide a low correlation to traditional strategies within its relative fund category.











