Case Study

Momentum Trading Strategies

Momentum Trading Strategies

Pages 2 Pages

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 e ective 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 modi ed or new strategies have to be developed for pro table 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

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