We believe that markets are not random. They move in trends shaped by supply, demand and investor sentiment. Our philosophy is founded on the conviction that trends, when identified correctly, offer superior returns.
This belief is reinforced by extensive academic research and real-world results, demonstrating that trend-following remains one of the oldest and most profitable investment strategies on Wall Street.
For instance, the Eurekahedge Trend Following Index (Bloomberg Ticker – EHFI808) tracks 34 equally weighted trend-following strategies, serving as a benchmark for hedge funds that apply this methodology. This underscores that successful investing is not about predicting the future but rather aligning with market realities – letting profits run while cutting losses short.
This fundamental principle of trend-following is a core belief in our market research.
The Eurekahedge Trend Following Index is a benchmark that tracks the performance of hedge funds employing systematic trend-following strategies across various asset classes.
Since 1999, our research has helped both institutional and private investors identify profitable market regimes in financial markets. We define market regimes as recurring trend conditions over time.
Trends do not move in a straight line – they transition between different conditions, each one requiring a different risk awareness. For example, bull markets often experience sharp corrections, while bear markets can see powerful rebounds. Thus, simply distinguishing between these two market regimes is not sufficient, especially when it comes to risk management, position sizing or optimizing buy-and-hold strategies.
By aggregating multiple predictive indicators — spanning trend, trend quality, sentiment, and dumb- and smart-money positioning — we gain a comprehensive and unbiased view of markets across three distinct time periods. Based on these short-, mid- and long-term market health readings, we determine the specific market regime for any given market
At WallStreetCourier, we go beyond conventional methods, offering a deeper, data-driven approach to classifying and identifying trends. We define six market regimes across two time frames, serving both short-term-oriented traders and buy-and-hold oriented investors.
As shown above, these regimes include two bull and two bear market regimes, each varying in intensity from light to strong, along with two consolidation regimes — one with a positive tilt and one with a negative tilt. As shown below, each market regime has its own statistically tested risk-return characteristics, providing a clear framework for understanding the broader trend landscape.
Our daily updated Market Regime gauges let you identify market regimes in seconds. Perhaps most important, each regime has a distinct risk-return profile, providing you with a clear statistical edge.
We believe that true market insight comes from rigorous, data-driven research and a deep understanding of market dynamics. Our research identifies trends based on multiple predictive indicators across various time frames, incorporating factors such as trend strength, trend quality and sentiment (including smart- and dumb-money positioning).
By aggregating these indicator signals into predefined market regimes, we provide an unbiased market perspective, grounded in statistically significant data rather than the latest narratives.
WallStreetCourier uses a stringent and transparent research process to identify underlying market regimes.
In the end, our research focuses on what truly matters – actionable insights rooted in statistically relevant facts. Above all, the clear, structured and transparent research process makes it easy to learn and apply this proven framework to any market whenever needed.
By eliminating emotion from the equation, our research avoids the noise of financial headlines, delivering robust, reliable results with unmatched convenience.
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