What It Is
Strategies that exploit persistence of relative or absolute strength over defined horizons.
Momentum Strategies sits inside Part VII - Algorithmic & Quantitative Investing and should be interpreted with adjacent concepts.
Concept Guide
Momentum Strategies explained with practical workflows, risk-aware interpretation, and portfolio-level context.
Strategies that exploit persistence of relative or absolute strength over defined horizons.
Momentum Strategies sits inside Part VII - Algorithmic & Quantitative Investing and should be interpreted with adjacent concepts.
Momentum is one of the strongest documented anomalies but experiences crash regimes.
1. Define lookback, rebalance cadence, and risk controls upfront.
2. Diversify across assets and momentum horizons.
3. Add crash-control overlays for reversal regimes.
Overconcentrating in crowded winners near regime inflection.
Concept FAQs
It is most useful when combined with complementary concepts from the same cluster and explicit risk controls.
Avoid one-metric decisions. Confirm with at least one independent signal and pre-define sizing and invalidation rules.