Strength Trading

[longandshort]

He is not a site, his publications are from the last millennia, are in rag journals and he does not have performance data; if you think that is a valid reference you are in the wrong industry. Remember: 10 sites with actual trade performance data, not old papers.

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.

 

[Cabin111]

There’s tons of academic research on momentum. Typically, the idea is that investors over or under react to news, and that generally a catalyst will drive a price to a new level. Uninformed trading creates transient volatility — where price operates as a non-stationary geometric random walk.

The secret sauce to momentum trading is knowing what it’s actually capturing, analyzing periodic returns, and developing a theory of catalysts that drive the factor.

At the simplest, time series momentum is not as good as cross sectional momentum. This is because time series is easy to track which means that prices are more efficient (everyone can see this). So step one is to rank returns within a peer group, and then rank those within a sector, and then market. Betting on winners vs. losers is what allows you to harvest the raw risk premia of the momentum factor.

Anyway, this is where I have an operational and analytical edge over you, but if you start reading into the actual research on momentum (and start analyzing the data yourself), you should get to where I am today in about 10 years.

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.

 

[longandshort]

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.

 

[Dazz]

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.

 

[taowave]

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..

tons of data -what a joke - there are only whispers and silly charts - there are no trade results or performance; data without performance is worthless; get a grip dandelion; momentum trading cannot be found or if it can, tell me 10 sites that trade momentum (for sure) and publish performance or quit. There are over 18 sites that claim to trade Fibonacci and none actually trade and none have performance data. Take momentum off of life support and bury it alongside Fibonacci.

 

[Cabin111]

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.

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!!

 

[longandshort]

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..

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

 

[Dazz]

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.

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.

 

[kellycobb]

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.

 

[Global]

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.