This presentation focuses on improving the fundamental based ?Low-Risk-Approach? by using technical Trend-Following-Strategies. Stock with e.g. a low Beta are known to outperform in the long run the more volatile, high Beta Stocks, so, Low-Risk-Strategies are known to have higher risk adjusted returns. But applying a relevant timing strategy (i.e., a moving average or high momentum) will even more enhance the risk-adjusted return.
This presentation focuses on ETF-Sector-Rotation-Systems and will give examples of Dynamic-Asset-Allocation-Strategies by applying Trend Following Strategies in the process of portfolio optimization. A portfolio, constructed from trend filtered Sector ETFs, by also taking into account the overall trend of the benchmark, shows significant better risk measures, such as lesser drawdowns, higher return and lower volatility compared to the Benchmark.