Discretionary portfolio management is full of traps and pitfalls.
Behavioral traps include:
Systematic portfolio management is gaining traction as it often provides better returns, lower deviations from expected outcome, improved control, full transparency and lower costs.
However the performance of a systematic strategy over time is as good as the models used.
The best practice suggests using models that have been massively tested across at least 6 different market cycles and on different equity markets and a large statistical sample of securities.
Then the models must be easy to understand, transparent (no black box / AI mystery) and actionable.
Trendrating model ticks all those boxes:
The Trendrating solution consists of: