Strategy
At THE ABSOLUTE RETURN, we use trend-forecasting AND trend-following strategies in our family of portfolios.
Trend Forecasting Strategies
There are 3 key technical innovations and models that form the core of THE ABSOLUTE RETURN’s dynamic trend forecasting approach that is used in the Absolute Income/Plus and the Dynamic Macro portfolios. These technical strategies are informed by the investment team’s composite picture of the global macroeconomy based on key economic indicators.
1. A proprietary version of the Elliott Wave Fractal Model with unique inter-market and fractal analog analysis and a comprehensive macro-economic overlay to make probabilistic forecasts more objective
2. A proprietary “2nd Derivative of Price” model and methodology that forecasts (provides a pre-trigger signal) and then confirms trend changes in an asset’s price at many degrees of trend
3. Cycle-superposition model that identifies high probability timeframes for trend changes
Trend Following Strategies (cutting-edge strategies from the field of Technical Analysis)
We also utilize top performing trend-following strategies which have proprietary tuning enhancement and are geared for the market environment at hand, and a composite fundamental/technical strategy incorporating Relative Strength in the Market Neutral portfolio. Our trend-following strategies are captured in our Market Tour review performed on the markets each evening.
