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<p><br>The pros of momentum based investing are that it is usually more lucrative than trend-reversing based investing. The collections of stocks that allow for profitable momentum strategies are not easy to find. I am tempted to believe that the larger hedge funds are specialists in finding such collections. For a retail investor, it is usually pretty hard to consistently pinpoint the points where trends starts to bend. You need effective StatArb algorithms, and portfolio screening and weighting software like DigiFundManager to compute your portfolios and time your entry and exit points.</p>
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<p><br>To answer this question I would at a minimum need to have properly backtested strategies that are momentum which is a term I am not sure I know what you mean when you is it. Even after doing the testing the question would still not be answered. Are we dealing with a certain asset class? What time period? Even then it may not matter because backtesting will not assure us of what will occur right now. If someone says here is what my strategy did for me or how it backtested. I am not trusting strangers online to tell me …</p>
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<p id="isPasted">The best Momentum Trading Strategy “Cantu Tactical Momentum Strategy” with Added Moving Average Sell Discipline for Minimum drawdown.</p><p>This strategy uses “Sector Rotation” by owing the top 5 Sectors for the month. As Sectors change they rotate to the next sector. Also, when the Market begins to sell-off they, now, use moving averages to protect the principal with the goal of selling sooner than the rest of Wall Street.</p><p>This philosophy of Cantu Tactical Money Management is in essence a philosophy that follows a Momentum approach. The approach follows a strategy of “Owning The Best and Selling the Rest” goal. …</p>
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<p id="isPasted">Momentum trading is a technique where traders buy and sell after observing the strength of recent price trends .</p><p>There are Momentum traders who bet that an asset price that is moving strongly in a particular direction will continue to move in that direction until the trend loses strength and there are momentum technical indicators as well which measure the change of price of a financial instruments over a given time span.</p><p>There are generally two ways to use the momentum indicator :</p><p>• As a trend- Following indicator analogous to Moving Average convergence</p><p>• Divergence(MACD)</p><p>There are many momentum …</p>
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<p id="isPasted">Moving averages with RSI or ADX are great to figure out momentum in prices on a certain chart.</p><p>I use Exponential Moving Averages, a combination of different time frames, which is also illustrated by the indicator Alligator. This along with the RSI or ADX gives a good idea of the direction and strength of prices.</p>
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