Strategy Sector Allocation – EN

Our sector allocation is fully based on our technical model (for more details, have a look at our technical model: strategy -> technical analysis).

This means that for each sector, we compute its technical score based on its trend and its price momentum for different time horizons (short term, medium term and long term).

Then, the 3 sectors with the best score are set in overweight (OW) while the 3 sectors with the weakest score are set in underweight (UW). The 4 remaining sectors are considered as neutral.

Based on this sector allocation, we compute the theoretical excess return that would have been generated by investing on this strategy. This excess return is represented by the green line in the first chart.