Research methodology and trading approach
Advisory services recommendations are based primarily on technical, quantitative inputs which have been evaluated and tested over time, across diverse markets and in varying market conditions. The basis of the analysis should not however be considered entirely automated or systematic in that more fundamental macro and micro inputs are generally incorporated into the research process.

Our research methodology
Technical analysis has evolved from the periphery of market analysis disciplines to the forefront of research and trading methodologies among modern investment banks, hedge funds and brokers. While technical analysis may incorporate various specific styles and approaches (including GANN Theory, Elliot Wave Theory, candlesticks, point and figure charting, momentum, pattern recognition, Fibonacci and general trend analysis) it is the focus upon previous and current price behaviour rather than upon fundamental news and rumours that underpins the generic discipline.

The interpretation of technical inputs can vary between practitioners. The technical criteria included in our research approach include:

Our trading approach
Prudent risk and money management provide the touchstones to any successful trading and investment strategy. Because our trading services embrace derivative instruments such as CFDs, capital protection bears a significant influence on the trading advice we provide.

Risk management
Predetermination of exiting losing positions (a ‘stop loss’) governs all our advisory and discretionary services. Before any recommendations are issued, the appropriate stop loss is first established. The stop loss on each individual recommendation once determined will never be adjusted to a level further away from the prevailing price level. The stop loss may however be adjusted (or ‘trailed’) to reduce the capital at risk once a position has been established.

Money management
Money management concerns itself with the amount of capital allocated to each trade position. Our approach is one of consistency, with each position recommended representing a generally similar nominal financial value. Position sizes may however vary over time as a function of an increase or decrease in risk capital or extreme movements in volatility.

Use of leverage
The products in which we provide advisory services allow for a high degree of leverage, especially in foreign exchange and stock indices. While leveraged (or geared) products may facilitate significant percentage gains, losses may also accumulate rapidly. Leverage is therefore controlled and always applied in the context of our risk and money management methodology.

Timescales
Because our services are based upon trading CFD and rolling spread bet products, the implications of daily funding costs mean that the majority of our advisory services are based upon relatively short term time horizons – typically from one day to approximately one month in duration.

Research Coverage
Our research methodology may be applied to most financial instruments including equities, stock indices, currencies, metals and interest rates. Trade recommendations are typically issued when deemed appropriate during each business day, although the frequency varies according to market conditions.

Need more information?
If you would like to discuss any aspects of our services in more detail please contact one of our trading advisors on +44 (0) 207 550 8546 or email enquiries@cityindexadvisory.com.

We also hold regular free educational seminars at our Moorgate offices in the City of London. Please note that places are limited and are allocated on a first come first served basis. For further details please visit our Seminar page.BR>

Click here for further information on the Seminars we offer