Garch Technical Model (GTM)

Garch Capital LLC was founded in 2012 as a Registered Investment Advisor with a focus on offering investment strategies based on a unique single stock pricing model. The model was modified in 2020 from a quantitative modelling approach based on the financial performance of the equity's business to a technical model analyzing the stock's future performance potential based on its price action, volume and relative strength across different time periods.

The Technicals based investment philosophy has been around for a long time and its origins were in the form of tape reading of price prints. It then evolved into plotting of the price movements into stock charts. Once the price charts became available, the studies on patterns in the movement of stock prices over time led to establishing a trading system. The significant availability of computing power and versatility of software has made it possible for a view of the price and volume prints across different time cycles. Additionally, there are dashboards on a range of technicals drawn from statistics applied to price and volume data. Garch Capital has through its research found conviction in being able to organically track these developments and understand the power of the core concepts and theories prior to the onset of the technology that made this approach responsive and scalable.

While the model has its appeal, it must be pointed out that it appears to work best in trending markets from a returns performance standpoint. In sideways markets, the return performance does weaken but the value surfaces through controlling downside risks .