The Tigers have invested heavily over the summer following their promotion back to the top-flight, signing eight players on permanent moves and three further season-long loan deals.
"We have been very encouraged by what we have seen in the opening three games of the season," Allam told the Hull Daily Mail.
"Aside from the opening 20 minutes at Chelsea, the performances have been absolutely superb and we have shown we have the quality to compete with sides at this level.
"Also, all the new signings have shown they can be quality additions for us this season.
"Whilst we have obviously not been the biggest spenders in the market, when it comes to squad strengthening in the window, we have added one of the highest numbers of players in 11.
"The thing that pleased us was that we got the majority of our business done early, so the players have had time to settle and feel part of the club and squad.
"Yes, we went in for Shane Long on deadline day and we missed out, but that wasn't panic.
"It was opportunistic on our part. We saw a chance come up to possibly add a quality player in an area which would strengthen us, and we tried to do it.
"Come January we will approach it the same way. We will look at our position and if investments make sense, they will be made."