|
With regard to the sites and services that ProfiTrend Enterprises offers investors, our core strategy involves what we call relative trend analysis™ (RTA). It’s proprietary to some extent, but could easily be approximated given the depth of our explanation in The RTA Guide. We believe our edge is simply in doing the math for you.
RTA tracks price performance over time using exponential moving averages of percentage price changes. By using percent changes rather than currency values, all investments in a particular class are placed on a level playing field... so the numbers reported allow the investor to see all performance figures relative to one another.
Another advantage of RTA is that it is possible to track a huge number of potential or actual investments without the misleading and cumbersome aspects of charts. Every equity or index or currency (or whatever) is represented by two numbers... trend and consistency.
Although other scales could be used, trend is an indication of the current average price change per week. Consistency tells us the extent to which price moves are heading in the same direction. We all look for those investments that move up steadily over time, as opposed to those that thrash around up and down and keep us awake at night.
I think we’d all be happy if, for example, we bought a stock that rose at least 1%/week at least 70% of the time. That would be a great annualized return.
There are no guarantees of course. Trend and consistency values are subject to change from all sorts of market forces. Nonetheless, just knowing the current values of trend and consistency for a large number of potential investments puts us a large step ahead of those who don’t. As we like to say, a consistent trend is less likely to bend.
With that in mind, let us introduce our small, but growing family of RTA sister sites...
- TSX TrendWatch. This is our core coverage of the stocks and indexes that comprised the S&P/TSX Composite Index.
- Canadian ETF Review. Exchange traded funds are one of the hottest investment opportunities right now... especially for those who don’t have the time to acquire and follow individual stocks. They are diversified vehicles like mutual funds, but trade like stocks. Also, they don’t carry the exorbitant management fees that mutual funds have.
|
