Trendrating was created to provide better tools to maximize investment performance and improve risk control. We bring additional intelligence and measurable value to the existing decision processes. Superior performance and financial success come from discipline and a systematic reality check of assumptions. Bias, emotions, market noise and overconfidence may severely limit a manger’s ability to perform.
Momentum factor analytics are the answer. The industry is evolving. We believe that in five years 50% of all asset managers globally will incorporate some form of momentum and Trendrating is leading the way. The value of our service is not hidden behind theories and hypothesis; it can be measured every day in your P&L. More than 100 customers use Trendrating as an additional metric in the decision process and we look forward to serving thousands of customers in the near future.
Our technology team spent five years in research & development to improve upon the two most common types of Momentum Factor Models used by professional investors The first model type is typically based on 1 or 2 price related indicators such as Relative Strength or Pivot Points. These models can identify momentum quickly but don’t fare well in volatile markets and are not geared towards portfolio investing.
The second model type needs a much longer period (6 months or so) to confirm a trend before participating. These models miss a decent portion of the run up and quite often are late to exit giving back profits. The Trendrating Smart Momentum Model is based on a multi-factor approach designed to identify trends early and adapt to market volatility to provide stability and greater profitability for long-term investors.
The inability to read a tape and spot trends is also why so many in the relative-value space who rely solely on fundamentals have been annihilated in the past decade.