Quant Trader Alan Clement from Helix Trader discusses momentum trading & strategies, including:
• Why momentum trading is so popular and how it works,
• What makes a good trend indicator and the 4 best indicators to identify trends,
• Why the moving average is not a good trend indicator,
• How to rank stocks by momentum and how many momentum stocks to hold in a portfolio,
• The danger of stops and using momentum for exits instead,
• How dual momentum protects during Bear markets and market crashes,
• Filtering out false signals in indicators,
• Plus, market regimes, shorting weak stocks, position-sizing, and much more!
► You can discover more from Alan at: www.HelixTrader.com and www.SmartSystematicTrading.com
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** Timestamps **
00:00 Getting started!
02:46 What is momentum trading?
04:28 Why momentum trading is so popular
06:05 Disadvantages and challenges of trend following
07:37 How and why momentum works
09:34 What makes a good trend indicator
12:03 The 4 best indicators to identify trends
14:02 Balancing smooth vs lag in indicators
15:05 How to measure strength and direction using ADX
16:08 Why moving average is not a good trend indicator
17:18 The best lookback period for measuring momentum
18:53 Why weekly charts is the sweet spot for momentum
20:38 Combining indicators for Dual Momentum
21:58 Absolute vs Relative momentum
23:16 Benefits of Dual Momentum
24:17 Using Dual Momentum to manage risk and as an exit
27:53 How to rank stocks by momentum
28:53 How many momentum stocks to hold in a portfolio
30:45 The danger of stops and using momentum for exits
33:40 How dual momentum protects during market crashes
35:38 Why Market Breadth is not a good timing tool
36:36 Position sizing based on momentum scores
38:52 Chart example of Relative momentum
39:58 Using momentum on the Short side
42:36 Shorting the weakest momentum stocks
44:04 Should you punish volatile momentum stocks?
45:33 How to implement a market regime filter
47:38 The "magic" of dual momentum
49:48 Using Linear Momentum to measure momentum
50:53 Dual momentum in Futures strategies
52:10 Filtering out false signals in indicators
53:22 Momentum in long-term bear markets
54:56 Signals a bear market is starting
57:38 How to learn more from Alan
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