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GOLDEN

RATIO

AT A

GLANCE

This Golden Ratio Strategy has been built around the interplay the indices have with gold during bull and bear markets. As a default harbour against inflation, we have identified and quantified a statistical relationship between the two.

One constant trend we see repeated time and time again is the way people treat gold as a hedge during 'bad times'. That is, when the markets are under performing or are bearish, there appears to be a migration from the stock market into precious metals as a safe haven until we see a reversal. This strategy looks to take advantage of this using a proprietary ratio between the S&P500 and Gold to try to be on the right side of strongest trend.

BY THE

NUMBERS

EQUITY

GROWTH

Starting balance of $100,000 USD

HISTORICAL

PERFORMANCE

ASSET

ALLOCATION

INVESTMENT

EDGE

The Golden Ratio Strategy works by creating a unique ratio between the price of gold and the S&P 500 index. This ratio looks at multiple inputs including weighted averages over the short, medium and long term, growth of each respective market as well as a few custom indicators. Once this ratio is calculated, we then run a modified moving average across it to determine which of the two asset classes is the stronger play.

Due to the nature of this strategy, this has a long-term outlook, only rebalancing once a month, and possibly only switching between the two asset classes a few times a decade.

By switching from one asset to the other during bull and bear markets, over the 50 years, this has been tested, it has outperformed both a buy and hold strategy of the major indices, and a mixed portfolio of gold and indices.

As this relationship between the two instruments isn't perfect, there are times when both the indices and gold are bearish. As such, this strategy has a mechanism that allows it to go to cash until such a time where a clearer outcome is observable.

WHAT

NEXT?

See how the blending of our three strategies produce strong results, whilst properly managing the risk and drawdown

UBIQUE

PORTFOLIO

This strategy looks at volatility as expressed by the Cboe Volatility Index (VIX), using a quantitatively driven approach

FEAR AND

LOATHING

KEEPING UP WITH

THE JONESES

This strategy uses almost 100 years of past data to look for a positive expectancy within the Dow Jones Index. 

63/66 Hatton Garden

Fifth Floor, Suite 23

London

EC1N 8LE

United Kingdom

+44 (0) 203 633 6961

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​This website should not be regarded as an offer or solicitation to conduct investment business. Past performance of investments is not necessarily indicative of future performance. The value of investments may fall as well as rise and the income from investments may fluctuate and is not guaranteed. Clients may not recover the amount invested. The investments mentioned on this website are not suitable for all types of investors. Investment advice should always be sought from a qualified investment adviser before any investment is made.

Trading and investing can be a challenging and potentially profitable opportunity for investors. However, before deciding to participate in the market, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose.


There is considerable exposure to risk in any investment transaction. Any transaction involving securities involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency. Investments in speculation may also be susceptible to sharp rises and falls as the relevant market values fluctuate. The leveraged possibility of trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. Not only may investors get back less than they invested, but in the case of higher risk strategies, investors may lose the entirety of their investment. It is for this reason that when speculating in markets it is advisable to use only risk capital.
 

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