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:
- Tested in sample on 20 years of daily data (…1988-2008) for 15,000 listed securities on 10 markets.
- Validated out of sample on 5years of data (…2009-2014)
- Live and used by our customers since 2014
- Built on a sophisticated pattern recognition algorithm with transparent rules
- Uses self-adjusting time windows for more accurate results
- Generates an easy to use rating methodology where A and B rated stocks tend to outperform those rated C and D .