Momentum

Trend Following Indicator

Take advantage of investor herding by using our quantitative momentum indicator and get notified when a certain market loses momentum. We use a combination of windows to build different moving average crossovers in order to get a diversified view of the current momentum, and we aggregate them into one simple risk indicator.

Diversification is Key

Trend Following is Tricky

Choosing the right combination of windows is a tricky task when building a trend following strategy. Some combinations are better at reacting quickly but lack a more long-term vision, and others might be great at capturing long-term momentum but fail to react to quicker changes in the market. Our indicator is built with diversification in mind and is an efficient aggregation of multiple simpler momentum signals.

Smart Investor Herding

Follow the Money

Choosing a trend following investment strategy is putting your trust into where the money is at. This mindset combined with our quantitative approach allows us to have a signal which can be used to reduce losses during market crashes and still greatly profit from bull markets.

Deliver a Clear Signal

A Simplified Indicator

Alquant offers the result of its analysis in the form of an indicator ranging from 0% to 100% on a daily basis. The value of the Momentum indicator is inversely proportional to the exposure to global equity markets that an investor should take in order to maximise his risk-adjusted return. For example, a value of 20% indicates that an 80% exposure to the underlying index is optimal in terms of risk and return.

Indicator Low Risk Indicator High Risk
Indicator High Risk

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