Chapter 3: Investing Strategy Engine
by PRASHANT SHAH -
“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” – Abraham Lincoln. In this section, we begin our journey toward developing a momentum investment strategy. I call this journey because it is a stepwise explanation of the entire strategy and is backed by data and ... Read more
Chapter 4: Relative Momentum
by PRASHANT SHAH -
“While standard economics assumes that we are rational, making logical & sensible decisions, the fact is we are far less rational, and our irrational behaviours are systematic and predictable.” – Dan Ariely Relative strength is a very interesting and useful subject. I have a firm belief that it can change the way you trade and ... Read more
Chapter 5: Improvements
by PRASHANT SHAH -
“Don’t worry about what the markets are going to do, worry about what you are going to do in response to the markets.” – Michael Carr We now have a decent strategy in place. While practicing the strategy and observing how stocks perform, I explored many other possibilities. There is no perfect strategy that works ... Read more
Chapter 6: Momentum Indicators
by PRASHANT SHAH -
“Chase the vision not the money, money will end up following you.” – Tony Hsieh Our momentum strategy engine enabled us to select the conditions and design a momentum strategy plan. People also use various technical trading strategies. How about including those strategies in the strategy engine? Will it improve the performance or just end ... Read more
Chapter 7: Noiseless charts
by PRASHANT SHAH -
“If you always do what you’ve always done, you’ll always get what you’ve always got – Henry Ford ————————————————————————————————————————————– The strategy or the tools that you are comfortable with can also become part of your momentum investment strategy. In this context, using noiseless charts can be an interesting twist to the momentum investing strategy, The ... 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
