Trendrating covers over 20,000 indices, sectors, ETFs, stocks, commodities and major currencies across 40+ countries.
Ease of Integration
Trendrating Feed can be utilized by popular portfolio optimization platforms including Matlab, R, S-Plus, etc. to easily incorporate momentum into existing quantitative strategies.
The ability to capture trends, profiting from bull markets and avoiding bear phases is the key to superior performance on a consistent basis. Investors that have a good understanding and a disciplined respect for the specific price trend of securities outperform competitors. Any investment strategy can be enhanced by a better synchronization to trends developments.
Most investors use numerous metrics based on fundamental and quantitative data, but very few measure in a proven, objective, systematic way, the real direction of price trends and remain hostage to market noise and opinions, despite the fact that capturing trends is the key to better returns.
Traditional indicators from technical analysis and chart pattern studies often yield inconsistent results across different cycles and market types.
Old school momentum investing tends to be late as it uses fixed time windows that may require time to adjust to fast changing trends.
But a new generation of sophisticated models has emerged to fix this.
Trendrating fills a critical gap of market intelligence by providing a methodology to support a better synchronization for individual stocks and sectors trends, that makes the investment decision process more accurately informed about the factor that impacts performance the most – medium term trends.
Trendrating solution is based on a “pattern recognition” algorithm that processes a large volume of data.
The algorithm works on a multi-factor analysis and uses a self-adaptive, flexible time window. When the different factors are in synch there is a high probability that a relevant trend is in place. The dynamic time window enables a more timely identification of an emerging trend and the multi-factor approach supports an effective filtering of price noise, short term volatility and false moves.
Trendrating provides advanced analytics designed to capture trends, identifying most of the winners and avoiding a large part of the losers with in a yearly horizon. Our model offers a unique rating of trends where A and B indicate a bull trend and C and D mark bear moves. We provide a unique edge where A and B rated stocks on average outperform those rated C and D.
Trendrating has created a new paradigm in terms of accurately spotting trends quickly to capture a large part of any meaningful upward or downward price move.
The “Advanced Analytics Feed” is a powerful complement to the existing analytical process of active equity portfolio managers. The data enriches existing in-house ranking methodologies and can be distributed to the entire investment team as an additional valuation metric to improve the selection and allocation process.
Statistical evidence of the mission critical “EDGE” – A/B outperform C/D
The charts below show the aggregated performance of all the stocks when rated A and B versus those rated C and D.