Discretionary
The Twowaymarkets UK Select (TUS)
Strategy
The first step in the investment process it to analyse the direction of the FTSE 100 index. We do this by analysing the Elliott Wave pattern and proprietary indicators including the Bullish Trend Indicator (BTI) and the Top 20 differential.
Elliott Wave is a commonly used technique, designed to identify price patterns. In identifying these complex patterns we can attempt to predict future price movement. To complement this, we use the Top 20 differential to analyse the overbought or oversold nature of the largest incumbents of the FTSE 100 index. We also use the BTI to assess sentiment in the market.
By combining the above with our extensive trading experience we will attempt to identify the future direction of the index. Having decided on the direction, we will consider the appropriate portfolio weighting. If we feel there is a strong probability of a rally in the index, the portfolio will be positioned with a strong long weighting. Conversely, if we feel there is a strong chance of a fall, the portfolio will be weighted short. Uncertain markets will result in a more neutral stance.
Having established the weighting, we consider the appropriate shares for the portfolio. Typically, if we feel the market will rise, we will buy stocks with a high beta co-efficient (expecting them to rise at a faster rate than the market). Then to protect the portfolio, we will short stocks with a low beta co-efficient (expecting them to rise at a slower rate than the market). This long and short mix to the portfolio ensures a degree of protection in the event our analysis proves incorrect. The portfolio will never be fully comprised of long positions or short positions. There will always be a balance.
The system was launched in March 2006 and since that launch date, the results have been extremely successful. register here for more performance data.
To apply for an account, please click here.
Should you have any questions, please call +44 (0) 207 099 1138 to speak with a dealer
