Let’s face it. The price trend of the stocks you select in your portfolios will make or break your performance. Why do more than 70% of mutual funds underperform the benchmarks over 3, 5, 7, and 10 years, according to the SPIVA scorecard (S&P)? They spend money and time on data, research, and tools whose real contribution to alpha is unsatisfactory. The reaction to trend developments on single stocks is often too late and inconsistent. They miss the opportunity to exploit the performance dispersion across stocks. Dismissing the importance of taking a serious and sound approach toward trend assessment is the main reason for underperformance.
Below is the performance dispersion for the S&P 500 investment universe:
How to exploit these facts? How to capture the winners and avoid the losers?
Want to profit from the performance dispersion, capturing the winners and avoiding the losers? Easy. Go straight to the point – incorporate efficient trend analysis, as performance dispersion is simply trends dispersion. Trendrating developed a methodology to rate medium-term trends, based on an AI model, designed to provide pragmatic “trend intelligence,” and used for years by 300+ firms on a global scale. A well-proven methodology to discriminate bull vs. bear trends is the only logical, pragmatic approach. Make trends work for you. Gain more control over price trends, exploit the performance dispersion across stocks, and maximize your investment returns. The positive impact in terms of performance and risk control can make a big difference.
Trendrating’s advanced technology and analytics provide better information to assess the actual direction and quality of medium-term price trends on more than 17,000 stocks across all markets. Our trend evaluation model efficiently captures the money flows, the buyers vs. sellers pressure, as this is the key driver of trends. We introduced the rating of trends, where bull moves are identified by the (A) and (B) ratings, and bear phases are alerted by the (C) and (D) ratings.
Here you find a few examples within the US Large and Mega Cap Universe. (A) and (B) ratings mark bull trends, while (C) and (D) ratings mark bear moves.
Below is a comparison of average returns for different investment universes using our rating grades to discriminate positive versus negative trends over the past 3 and 6 months. Positively rated stocks tend to consistently outperform those with negative ratings. The differential is over 30% across 6 months. Factual evidence about exploiting the dispersion.
The scope of our trend model is capturing medium/long-term trends with high accuracy. The result is far superior to the available conventional methodologies. Momentum is late at spotting trend reversals, as it requires a few months of obvious price action to identify the trend. This is particularly risky when you have a negative trend reversal, as it generates losses before acting. Generic technical analysis is good, but every single indicator can be erratic at times, depending on the market cycle and the volatility of the stock. See the trend insights that our clients received over the last few years:
Respect and exploit price trends. The combined trends of the stocks you hold will determine your performance. Given the magnitude of the difference between winners and losers, enhanced control of the actual trends of single stocks can add 10% or more to the annual performance of active strategies. The actual impact is visible and trackable in our system. A reasonable expectation, easy to double-check and validate using our performance management system.
Respect and exploit price trends. The combined trends of the stocks you hold will determine your performance. Given the magnitude of the difference between winners and losers, enhanced control of the actual trends of single stocks can add 10% or more to the annual performance of active strategies. The actual impact is visible and trackable in our system. A reasonable expectation, easy to double-check and validate using our performance management system.
Do not miss the opportunity to discover the better information that has already been used by our 300+ institutional customers for years. Easy to test, track, and validate using our system, specifically built for this. Profit from a free trial of our platform: analyze the accuracy of our model in capturing the big movers in your investment universe, run a sanity check on your holdings, gain insights into your investment universe, spot any recent trend reversal, and decide if this is for you. Contact us to claim your free trial today.
Trendrating is a vast tool that can empower a professional that wants to hone their craft by having a tool that can be used to analyze many data metrics. This can help to reaffirm your decision process when used by itself or alongside other methodologies.
I’ve just won the firm’s annual nationwide stock picking contest and used Trendrating to do it!
I use it every day, I enter client portfolios and get daily updates on them. I always looked at how a stock is ranked before buying it!
Finally, a system that unveils which parameters can help me capture alpha. It’s the best information I was looking for!
Trendrating technology makes it possible and easy to build multi-factor strategies and discover the actual value over history. This makes me feel more comfortable with my decision-making process.
A platform that works on fact-finding and provides a way to measure the actual value of different selection rules. It offers useful knowledge to filter out unproductive assumptions and market noise.
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