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Trend Concept’s fund managers compare their role to that of Ulysses’ companions: They plug their ears with wax so they can row without being distracted by the siren calls of the markets. Like Ulysses, investors can hear sirens but remain bound to the mast at their own request and thus withstand the temptations of the markets.
INVESTMENT FUNDS
Systematic trend analysis
Computer-based stop-loss strategies instead of uncertain forecasts
The heart of the TrendConcept system is asset management based on trend tracking. This method was developed in the late 19th century by dividing index movements into primary, secondary and tertiary trends. TrendConcept measures how many shares on an index are still on an upward trend. If a certain number of prices drop below their individual stop-loss limit, the portfolio is hedged (stop-loss strategy). The level is calculated by computer programs and fund managers implement the findings exactly. Emotions are therefore eliminated from the process. This system avoids most losses in a downturn.
That means there is a far higher capital base to invest in the next upswing. This method is based on a reproducible system rather than random decisions. TrendConcept has proven that it can be correctly positioned in all asset classes. In equities, it has so far proven successful on three occasions (1998, 2000-2003, 2008-2009), in bonds in 1999 and over 80% of the drop in the US dollar was avoided.