Most, if not all, trading websites are bullshit. Papers are tractable, which means you can replicate the authors process and evaluate them with your own data set to find robust signals. Also, his original paper was in the 90s but there have been hundreds, if not thousands, of subsequent papers examining momentum (based upon his approach) since then. Your response illustrates an inexperience with both the scientific method and trading analysis. If you’re looking for the dumb money, I suggest looking at the mirror. Also— lol, what etfs/active funds do you know of that trades Fibonacci retracements? None. How many trade momentum? Momentum is arguably the most famous and widely traded market anomaly.
An example of momentum... Warren Buffett bought more than $1 billion of Coca-Cola (KO) shares in 1988, an amount equivalent to 6.2% of the company, making it the largest position in his portfolio at the time. It remains one of Berkshire Hathaway's biggest holdings today, as of October 2019, holding the number three spot. But what made the Berkshire Hathaway Chairman make the purchase at that point in time, particularly when the stock was still reeling after the 1987 market crash? The stock market crash of 1987 had created attractive valuations, as all types of stocks were sold off with little regard to fundamentals.
Good example of a catalyst. If you know that Buffet and other large investors look for companies with attractive FCF yields that trade at a relative discount — it makes sense to find companies like that are seeing transient volatility and buy them, with the expectation that these large investors (who have a process which takes time and approval, etc.) will eventually buy your shares at a higher price. So the catalyst is the price, but the driver of the trade is that it is attractive to a large set of investors.
Warren Buffett bought more than $1 billion of Coca-Cola (KO) shares in 1988, an amount equivalent to 6.2% of the company, making it the largest position in his portfolio at the time. It remains one of Berkshire Hathaway's biggest holdings today, as of October 2019, holding the number three spot. But what made the Berkshire Hathaway Chairman make the purchase at that point in time, particularly when the stock was still reeling after the 1987 market crash? The stock market crash of 1987 had created attractive valuations, as all types of stocks were sold off with little regard to fundamentals.[/QUOTE] You have no idea what Warren Buffett does or trades. In this discussion, you have no live rooms, no live examples, no performance data = no interest; you failed to support your "tons" of academic research; no one cares, Grade F.
Not sure where you are going with this. Momentum is one,of the few market anomilies that "exists". There are many academic papers written on it. Does that mean every piker can exploit it?? Of course not.And if you can and do,why the fook would you post your returns and have some site?? The entire Canslim method is,based on monentum/ relative strength. Look at the guys who win Norm Zadehs trading championships..Academic papers are written on value investing with mono.. It seems like you are looking for the Holy grail..with conformation.. Not going to happen..What you will find is a handful of traders who knock the cover off the ball employing their own method,be it rooted in momo,value,technical,trend following or mean reversion. Google Cliff Asness and monentum trading.Maybe it will work for you..If not,find a style of trading that fits your personality and make the most of it.. FWIW,I only trade derivatives,have never felt comfortable trading pure direction,especially pure momo..
You have no idea what Warren Buffett does or trades. In this discussion, you have no live rooms, no live examples, no performance data = no interest; you failed to support your "tons" of academic research; no one cares, Grade F.[/QUOTE] I will say this...You put a dart board up of any stock in QQQ. Throw the dart at any stock in that index on March 23, 2020 ...You would be a happy camper today!!
1) yeah every piker can profit off of momentum 2) you can buy ETFs that are based on the momentum factor 3) g-score > canslim, but any “screenable” strategy (a la systematic growth/value) is likely to underperform in the future due to market efficiency (nothing is cheap & growth is priced in), making the risk-adjusted returns at par or worse than just buying the s&p
I will say this...You put a dart board up of any stock in QQQ. Throw the dart at any stock in that index on March 23, 2020 ...You would be a happy camper today!![/QUOTE] revisionist history and speculation.
I never risk more than 1% per trade. It has been working for me for the last few years and am hopeful that it will in the coming time also.
CPRI IN A BULLISH TREND CPRI bounced off its mo-day moving average and has already moved above its 10- an 30-day mov. average. Plus, its Relative Strength is going up and has crossed above its 20-day mov. average. Let's have a look at CPRI's weekly chart. CPRI is moving above its 10-week mov. average since October 2020. Moreover, the Relative Strength of CPRT is moving above its rising 20-week moving average since late September 2020. Finally, CPRI belongs to the Consumer Discretionaly Sector that is ouperforming.