We think it’s important to understand how our model interprets or quantifies risk with our continuous regime scoring or identifies points of exhaustion using our rotation signals. The following examples provide an idea for the robustness of our modelling and how to interpret content for individual client circumstances.
Unlike our rotation signals the continuity of our Regime scores is designed to provide a consistent description of the nature of the price movement for each instrument. This has two effects:
- We can compare the relative risk of diverse markets, indices, and instruments; and
- We have removed a great deal of subjectivity from our basic market commentary.
Our modelling allows clients to understand market circumstances more clearly and make effective strategic investment decisions.
Actions are always specific to client circumstances but we are confident that understanding what not to do in these periods will preserve value, even if it is counterintuitive to wait and initiate a position at a less favourable price but with a clearer view of the risk that is being onboard to a portfolio.
Investment | Trading | Regime | Current | |||
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Trend | Speed | Trend | Speed | Score | Weight | |
Regime |