Computer-Aided Investment Process & Technical Analysis Overlay
- The Cornerstone portfolio managers begin the investment process by building and back-testing investment models designed to generate trading signals
- These models analyze 10-25 investment choices selected by the manager, to identify a security for investment
- Funds are selected based on: sector correlation, price behavior, correlation to other investments in the group, etc.
- Our research shows that by applying basic technical analysis to our model strategies and the investment choices, we can significantly reduce the drawdown experienced during periods of market decline
- We find that we can lower the instance of quick market reversals or ‘whip-saws’ by applying the same technical indicators, thus increasing our percentage of profitable trades