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This video is the preview of our course on Momentum Trading Strategies.
https://quantra.quantinsti.com/course/momentum-trading-strategies
The objective of this course is to equip yourself with the knowledge of various types of momentum trading strategies, and how to manage the risks associated with it.
After completing this course, you will be able to list and explain the fundamental reasons behind the significant and persistent returns from momentum trading strategies.
Create and backtest time series and cross sectional momentum strategies on stock and stock indices, fixed income, commodities, and futures markets.
Optimize look back and holding period. Analyze portfolio returns and risk using different performance measures.
Identify the nature of the time series using Hurst exponent.
Explain the basic concepts in futures markets such as contango, backwardation, term structure, and roll returns. Apply crossover and breakout models to volatility decile portfolio.
You will start this course with the definition of a momentum strategy and dispel the myths around it. Then we move to the fundamental reasons behind momentum, which has been prevalent since the last two centuries.
You will also get acquainted with the basics of Python, which can be skipped if you are already skilled in it. Next, you will explore the field of technical analysis and devise a technical indicator based momentum trading strategy.
You will implement this strategy on a custom volatility decile based portfolio. Next, you will understand the types of momentum strategies, namely time-series and cross-sectional.
You will explore the difference in their approaches with the help of examples. You will then explain the importance of the lookback and holding period in a momentum strategy.
Further, you will implement the Hurst exponent on various asset classes to identify trends in the data. You will also conduct a correlation analysis to identify optimal lookback and holding periods. In the next section, you will be able to explain and implement a cross-sectional momentum strategy.
You will learn the different ranking factors such as past returns and fundamental factors used to rank the assets in a portfolio.
In the following section, you will identify different type of events which give rise to momentum. You will identify a pattern and implement a momentum trading strategy on the treasury markets.
Further, you will learn the basics of futures markets, and implement a strategy to extract roll returns and cross-sectional momentum strategy.
In the next section, you will explain the causes and effects of the momentum crash and how to avoid them. One of the crucial aspects of backtesting trading strategies is risk management.
You will learn various facets of risk management in day trading. You will learn these strategies through examples, fundamental reasons, and performance statistics. Also, you will gain knowledge to enhance the trading signals of these strategies.
Finally, the trading strategies created in the course can be extended further and used for paper and live trading. You will learn to automate these trading strategies on interactive brokers.
At the end of the course, you can access the Jupyter notebooks created in different sections along with the data files from a single downloadable folder.
Let’s get started!
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Momentum Trading Models, Course Structure | Momentum Trading Strategies | Quantra Courses.
Momentum Indicators
The Momentum indication is a typical device used for figuring out the Momentum of a specific property. They are visuals gadgets, commonly in the form of oscillators that can demonstrate how rapidly the price of an offered property is relocating a specific instructions, in addition to whether the price movement is most likely to continue its trajectory.
The concept behind the device is that as a property is traded, the velocity of the price movement gets to a maximum when the entryway of brand-new capitalists or cash right into a specific trade nears its top. When there is much less prospective brand-new investment available, the propensity after the top is for the price pattern to squash or turn around instructions.
How do you recognize if a supply is short term?
The total idea is to show whether a supply is trending upwards or downward. Usually, a great prospect will certainly have a moving average that is sloping upwards. If you are seeking a great supply to short, you normally wish to locate one with a moving average that is squashing out or declining.
The instructions of Momentum, in a basic manner, can be determined by deducting a previous price from a current price. A favorable result is a signal of favorable Momentum, while an unfavorable result is a signal of an unfavorable Momentum.
Momentum tools commonly appear as rate-of-change (ROC) indications, which separate the Momentum result by an earlier price. Increasing this overall by 100, traders can locate a percentage ROC to story low and high in trends on a chart. As the ROC comes close to one of these extremes, there is an enhancing chance the price pattern will certainly deteriorate and also turn around directions.
Is there an unfavorable Forex Momentum?
Explanation: Momentum Trader is a vector quantity, offered by the item of an item’s mass and also velocity. If the velocity of the object is unfavorable, i.e. the object is traveling in what has actually been chosen as the unfavorable instructions, the Momentum Trader will certainly likewise be unfavorable.
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