The Systematic Approach Is The Future of Portfolio Management
A systematic methodology offers the foundation for sound, effective, better-performing investment strategies.
1. Fact-finding. Discover critical insights about what parameters are the best to identify outperforming stocks.
2. Design, test and optimize rule-based investment strategies. Explore different combinations of selection rules and discover the most productive to maximize the performance and control risks.
3. Systematically execute the strategy. Guarantee operational discipline and consistency of results.
The systematic approach to investing offers key advantages.
Discretionary Approach
Transparency of the selected investment rules and parameters for selection and allocation.
Coherent, rigorous execution, consistent to the chosen process.
Prompt, disciplined risk control.
Possibility to execute historical tests across market cycles. Hard evidence and rigorous validation.
Transparency of the selected investment rules and parameters for selection and allocation.
Discretionary Approach
Transparency of the selected investment rules and parameters for selection and allocation.
Coherent, rigorous execution, consistent to the chosen process.
Prompt, disciplined risk control.
Possibility to execute historical tests across market cycles. Hard evidence and rigorous validation.
Systematic Approach
Discretionary Approach
Transparency of the selected investment rules and parameters for selection and allocation.
Coherent, rigorous execution, consistent to the chosen process.
Prompt, disciplined risk control.
Possibility to execute historical tests across market cycles. Hard evidence and rigorous validation.
MORE
A big advantage of systematic strategies is that they can be back tested. This means that you can analyze their historical performance before risking a dime. This is something you simply can’t do with a discretionary trading strategy. For discretionary strategies, it is very hard to evaluate their performance without actually having traded them for a long enough period.
Furthermore, systematic strategies are much more consistent and mechanical since they aren’t influenced by human emotions. The biggest problem with discretionary trading strategies is that emotions and subjectivity get in the way. If you are confronted with the same situation more than once, you might not always make the same decision. This cannot be said for an algorithmic approach. This lack of consistency is another reason why it can be hard to reliably evaluate a discretionary trading strategy.
In general, well-developed systematic strategies tend to have more rigorous risk management models. Especially when confronted with losses, humans tend to be very emotional which can make it hard to cut a loss. Second-guessing a trading decision can cost you valuable time and money. A trading algorithm would immediately close a position as soon as the correct criteria are met.
In addition to that, since systematic strategies usually are automated, you won’t have to spend hours in front of screen monitoring and scanning the markets for potential trading opportunities
SYSTEMATIC MANAGEMENT
Does Not Mean Following a Black-Box.
You are in full control of the rules governing the investment strategy as you select the parameters you want and combine them as you like. The data and analytics driving the systematic strategy are entirely transparent.
Discover smarter insights using the Trendrating solutions.
Learn how our unique platform can give you an extra layer of intelligence.
Systematic investors:
You can test the actual alpha contribution of any parameter from a rich data set including fundamental, quantitative and trend metrics. Compare the results. Explore and discover the most productive combinations. Design, validate and document your winning strategy. Easily support a rigorous execution and save time.
Discretionary investors:
You can access valuable insights, get timely alerts to identify new opportunities and spot new risks in your investment universe. Test and compare the contribution of your preferred fundamentals. Add an objective, pragmatic layer to control portfolio risks deriving from excessive exposure to falling stocks.
Investable products issuers:
Leverage our advanced technology to create and launch new products at low cost and with full scalability. Expand your offer with products of a new generation, and differentiate from the competitors. Better-performing products generate higher fees.
Advanced Technology to Build Winning Strategies
Leverage your skills and maximize your opportunities with smarter tools like 250+ global institutions are already doing. Fill the below form to get your free trial. A Trendrating representative will contact you within 24 hours.
SMART MODEL PORTFOLIOS
Discover our Smart Model Portfolios, combining solid fundamentals and trend validation rules to outperform consistently.
Track an example of the difference you can make with Trendrating. See our indexes, tested and calculated by premier German agent Solactive and visible on Bloomberg.
what our clients say
“The enlightening insights about the actual contribution to the alpha of popular fundamental parameters enabled me to improve my decision process.” – Fund Manager, UK.
“A great technology to explore and discover the most productive combinations of selection rules.” – Asset Manager, Frankfurt.
“Finally a system offering better information with actual value to navigate the market.” – Advisor, Zurich.
“This is gold for active portfolio managers!” – Portfolio Manager, Sweden
“I save time and filter out the market noise thanks to Trendrating.” – RIA, Miami.
“Building better model portfolios is easy and fast with this great tool.” – Wealth Manager, Boston.
“The strategy builder is a game changer for developing superior active strategies.” – ETF Manager, New York City.
“The ability to select and document well-tested, logical rules gives me an edge in marketing my services.” – RIA, Chicago.
“The market intelligence and the discipline that I extract from Trendrating gives me more confidence than the conventional data and tools.” – Asset Manager, Singapore.
“The knowledge from rigorous fact-finding is the basis of a sound investment decision process. Trendrating is providing the information I want, well done!” – Wealth Manager, Dubai.
About Trendrating
Trendrating is a leading provider of advanced analytics and leading-edge technology to professional investors. Our ‘Performance Management Platform’ is used by 250+ premier customers, including some of the largest players, who find in our system insights and market intelligence not available in the other services they have. Our customers can easily assess and track the actual contribution to alpha that our data and tools can deliver. The difference we make is in the ability to discover the parameters that best capture the outperforming stocks and to build and validate strategies and model portfolios with a few clicks. The platform also offers a directory of sample strategies combining the most productive fundamentals for any specific investment universe and a well-tested trend validation model, filtering out falling stocks. Our customers can use those sample strategies as a starting point and customize them as they like. We believe that investors need and deserve better information and tools. Our mission is to offer a new paradigm of value. Our key strategic partners include Bloomberg, Euronext and FactSet.
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