Keep in mind that momentum strategies tend to lose money in choppy or directionless phases of the market. They have a small percentage of winning trades; that is, they make their money in a few big trades. This means that if you miss a big move, you may not have enough capital to hold out through the draw-down as you wait for the next big move. Another design characteristic should be to limit your losses during the marketâs sideways mode. Remember, no strategy will make money in every market condition. If the strategy is designed to make money in a trending market, it will lose money in the choppy phase. Your priority should be to minimize the losses in the directionless market.