The Algorithm Is Never Surprised

There Is Room For Improvement

Any visitor who was looked around our website and read about how Selected Assets came to exist will have read how the founders got together with the intention of "doing it better" within the investment world. In our experience many advisors and managers simply don't deliver the value they would like to, and which their customers should expect.

In this article we will be looking at one of the major challenges facing human analysts, and one which our algorithm offers a solution to.

Business Acumen Is Not Enough

There are many parallels between being a good investment analyst and having a nose for business. Having the ability to reasonably consistently look at a product, service or sector and estimate whether there will be a customer base for it mirrors the mental exercise performed by an analyst: Look at the company or the sector - if there is a market and a growth potential, then there is a decent chance it is worth investing in.

But even the savviest businessman can get surprised. The calculation does not always bear out. Perhaps the customer presents a surprise - or maybe there is another weak link in the value chain which ends up causing the business in question to fail to live up to expectations.

The market, too, may surprise. The world has just experienced an international health crisis, but it doesn't have to be that dramatic; many things may occur, globally or locally, to change the conditions enough to undermine the value of a given business or sector.

Objectivity And Precision Is Possible

The Selected Algorithm has been developed and refined over several years. It is quite complex but based solely on closing rates; the data of the market, purged of opinions and emotions. This data is analyzed for trends and strength, and Buy and Sell signals are generated. Both the data and the process are entirely objective, and thus so are the results.

Or, in other words: The algorithm is never surprised. It contains no assumptions about the individual index or asset, or about companies or customers. There are no parameters for what we, from a human and subjective point of view, think should happen - it operates only with what actually happens. This makes it able to identify trends which would surprise an analyst without delay, hesitation or inertia.

Our signals are based on finding the strength where it is, and follow it wherever it leads. In a crisis, as well as on a daily basis.