Gregor Bauer

This presentation shows, how investors can apply the fundamentally well known „Low-Volatility-Anomaly“ – Phenomenon in a Stock Selection process. The process shows a strategy, which, at the example of the German DAX 40 Index, the stocks are ranked by volatility and only the 3 lowest volatile stocks. But additional rules apply, based on trend following strategies apply, to decide, whether the system invests in the asset class “Stocks” at all - or not. In case not, investments in other asset classes, like Bonds or Gold, will be done. This “Low volatility Strategy outperforms a Buy-and-Hold-Strategy significantly but combining this effect with technical Trend-Following Indicators will result in an even higher outperformance. The presentation focuses on the Dynamic Allocation of the Stocks from the DAX and combines trend-following and risk-based strategies to improve the “buy-and-hold” strategy