Case Study
Momentum Trading Strategies
MomentumTradingStrategies Manoj Kumar Gootam Manager Data Analytics Gyan Data Private Limited Chennai-600113 India manoj@gyandata.com Motivation Momentum based trading strategies are commonly used for commodities and stocks trading. Since they are widely used, the market continuously learns and adapts which makes these strategies less eective over time and yields poor results leading to nancial losses to the traders. Hence, from time to time, these strategies need to be re-evaluated for their ecacy. If necessary, the strategies have to be modied or new strategies have to be developed for protable trading. In a trending market, momentum based strategies outperform other strategies and make good money. But when the market stabilizes, these strategies always result in losses. Over the ye