Chapter 12: Momentum Trading
by PRASHANT SHAH -
“Success is where preparation and opportunity meet.” – Bobby Unser We have had an extensive discussion on momentum investing in detail, and it is important to understand how it differs from momentum trading. While both approaches are based on the principle of riding momentum, the expectations, processes, and activity levels in these two approaches are ... Read more
Chapter 13: Trading Strategy Engine
by PRASHANT SHAH -
“What makes a decision great is not that it has a great outcome. A great decision is the result of a good process.” — Annie Duke The momentum investing strategy engine that we discussed in the previous section can also be effective for developing a momentum trading plan. Stocks that meet momentum investing criteria often ... Read more
Chapter 14: Effective Setups
by PRASHANT SHAH -
“I believe in analysis and not forecasting. The key to success in investing is not in predicting the future, but in systematically following the present.” – Nicolas Darvas A technical trading strategy typically forms the foundation of any momentum trading plan. These strategies establish the rules for entry and exit, providing a structured approach to ... Read more
Chapter 8: Fundamental Strategies
by PRASHANT SHAH -
“You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.” – Bejamin Graham The Momentum Investing Engine can also incorporate conditions based on fundamental parameters. Fundamental analysis typically emphasises investing in quality stocks for the long term. This approach can be used to ... Read more
Chapter 9: The Blueprint
by PRASHANT SHAH -
“Great things are done by a series of small things brought together.” – Vincent Van Gogh We have discussed and developed a momentum strategy engine—an innovative tool to create and implement momentum investing plans. Our momentum investing plans integrate both absolute and relative momentum approaches. We analyse the strength of individual securities, their momentum, relative ... Read more
Chapter 10: Backtesting
by PRASHANT SHAH -
“History doesn’t repeat itself, but it does rhyme.” – Mark Twain Thus far, we have discussed the process of developing a momentum investing strategy plan. It was a stepwise explanation to develop a plan that was important to understand the momentum investment process. We have discussed the following- We studied popular strategies and combined them ... Read more
