Trendrating Advanced Analytics Data Feed
Trendrating Trend Capture Rating (TCR) explanation
Global Ratings
Trendrating covers over 20,000 indices, sectors, ETFs, stocks, commodities and major currencies across 40+ countries.
Ease of Integration
The Trendrating Feed can be delivered in a flexible format and can be easily integrated into third-party platforms such as Factset and Bloomberg or into proprietary systems built using Matlab, R, S-Plus etc.
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.
The charts below show the aggregated performance of all the stocks when rated A and B versus those rated C and D.
Trendrating Performance Management Platform
Trendrating Trend Capture Rating (TCR) explanation
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.
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.
Note: The graphs below are a few examples of stocks related ‘downwards’ and ‘upwards’ price moves captured way on time by Trendrating Trend Capture Model, in a specific time window (12 months). Therefore, the reported graphs are of course changed as of today due to the daily market progress. Contact us to discover the updated ratings of the relative securities.
Short guide to the use of Trendrating Performance Management Platform
Trendrating key features:
“By 2025, 30% of the actively managed portfolios will be run by models, with the experts focusing on the macro decisions and the selection of models“ – Rocco Pellegrinelli, Founder and CEO
The systematic Management of equity portfolios is a good alternative to the discretionary management approach. It can improve performance, efficiency and save costs.
Leading groups like BlackRock are shifting the management of some funds from experts “humans” to models.
In the hedge funds community the largest player is AQR who is exclusively using a systematic methodology.
With fundamental active management increasingly struggling to deliver consistent outperformance versus benchmarks over the medium-to-long term, a systematic model-driven decision-making solution offers investors the necessary tools to address the increased complexity of stock trends. Importantly, by its very nature, such a solution is able to avoid a number of the pitfalls of human judgement and behavioral drawbacks that often negatively impact an investment process.
Limits of the discretionary approach
This is why 92.09% of active large-cap core stock fund managers over the past 15 years had under performed the S&P 500 ending of 2018, according to the latest SPIVA research.
Benefits of the systematic approach
Managing long portfolios in a challenging market
Exploiting opportunities with a market neutral strategy
Portfolio Management is becoming more complex and challenging. Delivering superior returns for active managers and stock selectors on a consistent basis requires the adoption of advanced analytics and state of the art technology.
Price trends are impacted by a variety of factors that go beyond the purely fundamental metrics.
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 those that don’t.
Any investment strategy can be enhanced by a better synchronization to trend development.
Most investors use numerous metrics based on fundamental and quantitative data, but very few measure in a proven, objective and 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.
The Trendrating system enables active fund managers to improve the performance and control risks. Trends are there all the time, equity markets display an incredible dispersion of performance as showed in the below tables. This is a fantastic opportunity for investors, to capture a large part of the top performers and avoid most of the bottom performers using Trendrating. This allows active managers to outperform passive benchmarks that are just a mathematical combination of both winners and losers.
The dispersion of performance for the 12 months ending on January 1st 2021:
| STOXX Europe 600 Performance* | S&P 500 Performance* | ||
|---|---|---|---|
| Index | -3.90% | Index | +16% |
| Top 25% | +61% | Top 25% | +110% |
| Bottom 25% | -28% | Bottom 25% | -17% |
Trendrating’s unique & innovative trend capture methodology provides investment managers a framework for outperforming their benchmarks and to prove that active management can be smarter than benchmark tracking passive strategies.
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.
The solution is a powerful complement to the existing analytical process of active equity portfolio managers.
Trendrating Portfolio Sentinel makes possible to improve returns and control risks with an objective, well validated Systematic Trend Quality Assessment Methodology.
Discretionary portfolio management is full of traps and pitfalls.
See the forest, not the trees.
Problem: Recurrent underperformance
Solution: Use Trendrating to maximize returns and beat the benchmarks.
Problem: Old school risk control
Solution: Monitor Trendrating upgrades and downgrades for a timely spotting of trend reversals.
Problem: Time management
Solution: Save time, filter out market noise and gain focus on the key performance factor.
Problem: Increasing compliance
Solution: Enrich your arsenal (war chest) of analytics with proven new generation content.
Make Trends Work For You- Short guide to the use of Trendrating Performance Management Platform
The management of equity portfolios can be performed on a discretionary basis, a systematic basis or a combination of both approaches. Systematic portfolio management is gaining traction as it often provides better returns, lower deviation from an expected outcome, improved discipline and control, full transparency and consistency of the rules governing investment decisions and lower costs.
Systematic management can easily fit into most investment strategies (value, growth or contrarian) as the starting point is the universe of stocks that satisfy the defined qualitative or quantitative criteria. These systems are then used to decide the selection and timing of investments.
The underlying models are usually tested across years of history to validate the added value they can generate across different market cycles (bull trends, bear trends, ranging phases, high and low volatility) and across a large number of securities. After the testing phase, a real-life validation is required to confirm the quality of the models.
Some of the best performing hedge funds are purely systematic, and are proven to outperform a number of discretionary peers. Even some of the largest asset managers have recently moved the management of funds into systematic processes.
This trend is accelerating due to the following:
However, the performance of a systematic strategy over time is only as good as the models used.
Trendrating provides a well proven solution to investors interested in systematic management of equity portfolios.
Best practice suggests using models that have been extensively tested across at least 6 different market cycles and on different equity markets and a large statistical sample of securities.
Traditional models must be easy to understand, transparent (with no black box/AI mystery) and actionable.
Trendrating is the key. If your desire is to manage equity portfolios on a fully systematic basis we have the technology for you.
The foundation is our unique “trend capture” model based on pattern recognition.
The Trendrating Strategy Management Solution ticks all the key boxes of robustness:
The Trendrating Strategy Management Solution:
If you want to manage equity portfolios on a fully systematic basis, we have the technology for you.
The foundation is our unique “trend capture” model based on pattern recognition. This is part of our software solution and is part of a sophisticated engine that enables:
Our ratings model and ranking tool can be used as an overlay to any factor-based strategy, as a way to maximize alpha from any specific investment style.
| STOXX Europe 600 Performance* | S&P 500 Performance* | ||
|---|---|---|---|
| Index | -3.90% | Index | +16% |
| Top 25% | +61% | Top 25% | +110% |
| Bottom 25% | -28% | Bottom 25% | -17% |
*12 months ending January 1st, 2021.
Do not waste time.
Contact us and quickly see how our strategy management solution can deliver more value to your business.