Performance & Backtesting

This graph displays an example of the simulated performance of £100,000 invested in the current Crossing Point Adventurous equity asset allocation using our trend-following strategy and trading into cash when not invested in equities compared to the same portfolio and asset allocation of equity indexes invested without any tactical trading. The sections of the graph when the Crossing Point strategy signals to be out of all equity markets and instead invested in cash are shown as flat lines through portions of 2000-2002 and 2007-2009 while the buy and hold portfolio drop in value. Over this time period, the Crossing Point strategy delivers a greater increase in portfolio value through the removal of the worst of the market drops.

This graph displays an example of the simulated performance of £100,000 invested in the current Crossing Point Adventurous equity asset allocation using our trend-following strategy and trading into the UK All Stock Gilt Index when not invested in equities compared to an investment into the same portfolio of equity indexes with the same asset allocation without any tactical trading. The use of gilts instead of cash provides further return when out of equity markets compared to the negligible return from cash. Since 2009 the returns to gilts have been augmented due to quantitative easing by central banks around the world.

The Crossing Point trend-following trading strategy contains a mix of crossovers for further diversification. This is an illustration of how the Crossing Point strategy would have performed during the 2 years around the 2008 financial crisis. These two years were chosen as an example of how trend-following works when equity markets drop.

The graph at the top shows the simulated performance of £100,000 invested in the current equity asset allocation from the Crossing Point Adventurous portfolio using our trend-following strategy and trading into the UK All Stock Gilt Index when not invested in equities compared to an investment into the same portfolio of equity indexes with the same asset allocation without any tactical trading.

The chart on the bottom coincides with the two years shown in the above graph. Every month the equity trade decisions are decided by market movement. If trend-following signals showed that the market was dropping and the market investment should have been 0%, then this is shown in red. Shades of green represent the level of equity investment with dark green indicating a 100% investment.

The Crossing Point Guardian trend-following trading strategy minimises risk through an international asset allocation and a mix of trend following moving average crossovers for further volatility management. The above chart illustrates the Crossing Point Guardian trade decisions during the coronavirus crisis.

The graph at the top shows the performance of £100,000 invested into the Crossing Point Guardian Balanced portfolio from 31st January to 8th June 2020 using our trendfollowing strategy compared with the benchmark without any tactical trading. An investment in Guardian Balanced would have ended the period with £3,707.58 (3.84%) more than an investment in the benchmark.

The chart on the bottom reflects the trade decisions by international equity market and coincides with the months shown in the above graph. Each equity fund investment decision was decided individually and informed using trend-following signals. An equity investment of 0% is shown in red. Shades of green represent varying levels of equity investment with dark green indicating a 100% investment.

This graph displays the simulated performance of a £500,000 investment into the Guardian Balanced portfolio over 3 years from May 2017 taking an annual income of 4% compared with the same investment and income for a portfolio based on the Investment Association 20-60% benchmark. From Feb 1st 2020 when Guardian portfolios went live, the data is no longer simulated. This graph provides an illustration of the advantages of the Guardian portfolios which smooth returns by reducing volatility, maximum drawdown losses and sequence of returns risk when compared with the benchmark especially when there are dips in the market such as in late 2018 and beginning of 2020 due to the coronavirus crisis. By using Guardian portfolios, an investor would have ended the 3-year period with £29,020.61 (6.4%) more than an investment in the benchmark. This graph illustrates the benefits of reduced volatility upon income paying portfolios.

This graph displays the simulated performance of a £500,000 investment into the Guardian Balanced portfolio over 5 years from October 2014 taking an annual income of 3.5% compared to the same income from the Investment Association 40-85% benchmark. This graph provides an illustration of the advantages of the Guardian portfolios which smooth returns by reducing volatility, maximum drawdown losses and sequence of returns risk when compared to the benchmark especially when there are dips in the market such as in 2015 and late 2018. By using Guardian portfolios an investor would have ended the 5 year period with a significantly higher value in the investment. This graph illustrates the benefits of reduced volatility upon income paying portfolios.

This graph displays the simulated performance of a £500,000 investment into the Guardian Balanced portfolio over 5 years from October 2014 taking an annual income of 5% compared to the same income from the Investment Association 40-85% benchmark. This graph provides an illustration of the advantages of the Guardian portfolios which smooth returns by reducing volatility, maximum drawdown losses and sequence of returns risk when compared to the benchmark especially when there are dips in the market such as in 2015 and late 2018. By using Guardian portfolios an investor would have ended the 5 year period with a significantly higher value in the investment. This graph illustrates the benefits of reduced volatility upon income paying portfolios.