MOMENTUM Trading Strategy on the NASDAQ with Python using multiple lookbacks [MUST WATCH]

Published on February 15, 2023

Get Users Videos Explaining Momentum Trading Wiki, MOMENTUM Trading Strategy on the NASDAQ with Python using multiple lookbacks [MUST WATCH].


THANK YOU FEDERICO! In this video I am building a strategy suggested by a subscriber. The strategy tested on Nasdaq stocks is a multi look back window Momentum Trading strategy which is forming an equal weighted portfolio based on the 12 month/6 months and 3 months top performer returns. Interesting results in the first place!

Get the Notebook/Source code by becoming a Tier-3 Channel member:

Interested in exploring this strategy, getting fully rid of survivorship bias or apply that on other assets? Like, share, subscribe. Helps me a lot. Thank you 🙂

This video is recommended to check out beforehand:

Survivorship bias is also covered in that video!

Return calculation clearly explained here:

Python for Finance playlist (Momentum and other Trading strategies recommended ):

Interested in automated trading? Check out the Cryptobot playlist here:

wiki link:

Disclaimer: This video is not an investment advice and is for informational and educational purposes only.

00:00 – 01:42 Background / Strategy
01:42 – 03:31 Stock tickers & Prices
03:31 – 05:15 Excluding some stocks (listen to what I mention)
05:15 – 07:05 Monthly return
07:05 – 08:24 Recap on returns
08:24 – 11:40 12/6/3 month returns
11:40 – 15:47 Top performers
15:47 – 19:42 Portfolio performance (1m holding)
19:42 – 23:34 Backtest
23:34 – 25:34 Benchmark comparison / final remarks

#python #trading #strategy

MOMENTUM Trading Strategy on the NASDAQ with Python using multiple lookbacks [MUST WATCH], Momentum Trading Wiki

Momentum Trading Wiki, MOMENTUM Trading Strategy on the NASDAQ with Python using multiple lookbacks [MUST WATCH].


What Is Momentum Trading?

Momentum trading is a method in which traders deal according to the stamina of current rate fads. Price Momentum resembles Momentum in physics, where mass multiplied by velocity determines the possibility that an item will continue its path. In financial markets, however, Momentum is identified by other variables like trading Volume as well as rate of price adjustments. Momentum investors wagered that an asset rate that is moving highly in a provided instructions will certainly remain to move in that instructions up until the pattern loses strength.

Where Did Momentum Trading Start?

The practice of Momentum trading has been around for centuries. As early as the late 1700s, well known British financial expert as well as capitalist David Ricardo was recognized to have actually used momentum-based methods efficiently in trading. He bought stocks with strong executing rate trends, and after that offered supplies whose prices were performing poorly. He qualified the method with the phrase: “Cut short your losses; let your profits work on.”.

Exactly how do you select stock Momentum Trader?

When choosing the Momentum supplies, you require to take a look at supplies that are trading over the average number of shares. Stocks that have more than ordinary quantities are those that tend to space greater or lower on the open.

Complying with the growth of technical analysis in the late 19th century, concepts of Momentum acquired use in the 1920s as well as ’30s by popular investors as well as analysts such as Jesse Livermore, HM Gartley, Robert Rhea, George Seaman as well as Richard Wycoff.

The notion was first formalised in scholastic researches in 1937 by financial experts Alfred Cowles and Herbert Jones. They found that properties that executed well in one year often tended to continue to do well in the list below year.

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Forex Alert:

Our solution consists of products that are traded on margin and also lug a risk of losses in excess of your transferred funds. The items might not appropriate for all financiers. Please make sure that you completely understand the threats entailed.

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