Trendrating, a provider of momentum factor analytics for investment managers, has launched Strategy Builder as a new module within the Trendrating Momentum Analytics Platform (TMAP).
The Strategy Builder is based on a momentum model leveraged by some of the world’s largest asset managers, which self-adjusts to price patterns and volatility to measure the strength and direction of the trend. The Trendrating model identifies momentum one to three months ahead of established legacy models and thus participates in price trends for a longer duration. Strategy Builder enables users to create and personalize fully actionable momentum strategies that overlay against existing portfolio strategies without involving expensive quantitative research analysts or programmers and features real-time alerts and integration with the portfolio management system.
Rocco Pellegrinelli, CEO of Trendrating, says: “Recent studies have shown that factor premiums, like low-volatility, value and momentum, outperform market-capitalisation weighted indices and possess a much better risk/return profile compared to the market index.
“Many large fund managers are embarking on a new paradigm by switching from a traditional asset allocation approach (asset classes, sectors, regions), towards factor-based allocations. Our Strategy Builder makes it easy to overlay momentum with other factors to enhance returns and mitigate risk.”
The Trendrating Momentum Analytics Platform provides portfolio managers and market strategists with web-based tools to measure momentum objectively and systematically to achieve higher returns through better discipline and control. Ratings can be exported into Excel, research reports and quantitative models. Modules included in the current version include the Screener, Portfolio Analyzer, Portfolio Optimizer, Back Tester, Strategy Builder and Index Builder. All parameters of strategy testing and simulation are user defined. Portfolio managers receive immediate feedback on Trendrating results including the average historical accuracy across our letter ratings (A, B, C, and D). All results show the practical outcome during actual market conditions giving fund managers full transparency into the effectiveness of the system.