Benefit when markets rise or fall, when they move in tandem or in counter-cyclical fashion, when they offer returns derived from broad underlying economic performance or from event-specific occurrences.

We assist individual investors and asset managers in the field of alternative investments largely by developing programs and models for creating alpha in public markets. We can cover any range of markets, geographies and instruments, be it exchange-traded or OTC, cash or derivatives.

Our models are based on our idealized market cycle framework, which in turn is based on thorough and disciplined analysis of market behavior and the way it reconciles with market fundamentals. We always look up as much information as there is available, however most of the time our market forecasts are derived from a combination of five key concepts :

We give consideration to many variables when building our models. For instance, we factor the liquidity and each market’s level of volatility on a case by case basis to define the parameters of every one of our models. We test various combinations as far back as it is possible, typically a minimum of several years, to make sure that our conclusions are of proven statistical significance and we further analyze performance curves as a way to understand how to deal with market tempo and rhythm through different market environments. But generally, we consider two main factors when building trading models:

Essentially we work with two types of models:

1. TREND MODELS, irrespective of their trading time horizon, attempt to catch market moves in the direction of a larger trend. Our experience reveals that two situations present the greatest profit potential and have the lowest associated risk: trend departure & trend resumption;

2. REVERSAL MODELS, irrespective of their trading time horizon, attempt to catch market extremes right after an important reversal. Two situations appear the most profitable: range reversal & trend reversal.