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
Chief Executive Officer
A member of the firm since 2002, Manish Khatta is a key architect of Potomac’s rules-based investment systems and overall business growth strategy. Today, he leads the firm’s strategic vision. He is known for driving innovation across investments, technology, and brand while building a culture focused on disciplined execution and long‑term scale.

Dan Russo, CMT®
Co-Chief Investment Officer
Dan Russo, CMT® oversees investment research, portfolio construction, and risk‑based strategy development at Potomac. With a career rooted in technical analysis and disciplined risk management, Dan focuses on helping advisors and investors navigate market cycles with clarity and confidence. He is known for translating complex market data into practical, repeatable investment insights.
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.











