Successful momentum investing requires three key components; identifying trends early, letting profits run and protecting profits. The Trendrating model was created to meet these criteria.
LONDON and NEW YORK (PRWEB) October 16, 2014
Trendrating, a provider of innovative momentum factor analytics for global investment managers, today announced the addition of three new metrics based on a statistical probability analysis study on 13 years of history across 10,000 stocks conducted to support effective money management rules and tactical asset allocation. The metrics added to the Trendrating Momentum Analytics Platform are Duration, Magnitude and Upside Potential Indicator (UPI).
Duration: This indicator measures the percentage probability that a bull trend in a specific stock will continue based on the statistical distribution of duration. If a stock has a duration of 70%, this is the percentage in terms of probability that the stock will continue to rise.
Magnitude: This indicator measures the percentage probability that a bull trend in a specific stock will continue based on the statistical distribution of magnitude. If a stock has a magnitude of 30% this is the percentage in terms of probability that the stock will continue to rise.
UPI: This indicator is the average of Duration and Magnitude. If a stock has a Duration of 70% and a Magnitude of 30%, the UPI is 50%.
Rocco Pellegrinelli, CEO of Trendrating said, “Everybody knows that the more a bull trend becomes old in terms of time or it is overstretched in terms of price gains, the chances for the trend to continue decreases. By bringing some solid statistical measurability to this obvious concept can make the investment decision process more informed, disciplined and therefore effective. Successful momentum investing requires three key components: identifying trends early, letting profits run and protecting profits. The Trendrating model was created to meet these criteria and with the addition of our new metrics, our customers can incorporate statistically tested momentum analytics to fit with their own investment style.”
Trendrating was recently nominated as a finalist for two HFM Hedge Fund Services Awards: Most Innovative Technology Provider and Best Research and Data Provider. The HFM Hedge Fund Services Awards recognize and reward leading hedge fund service providers for customer growth, client satisfaction and technology innovation over the past 12 months. The winners will be announced on October 23rd.
Trendrating provides statistically tested momentum models and the most flexible technology to profit from the power of the momentum factor. Over 100 fund managers use Trendrating to identify opportunities, monitor portfolio risk, create strategies and build custom momentum baskets and indices. Our multi-factor model has been back-tested over 25 years on 500,000+ time series covering 20,000 Stocks, Currencies, Commodities, Indices and ETFs with an impressive 80% success ratio at identifying price moves greater than 5% over a prolonged period. Trendrating is pioneering a modern approach to measuring momentum which asset managers can be leverage for alpha capture and smart beta. With offices in London and New York, Trendrating is funded by Angelic Ventures. For more information, please visit http://www.trendrating.net.