Types Of Momentum in Trading | Momentum Trading Strategies | Quantra Course скачать в хорошем качестве

Types Of Momentum in Trading | Momentum Trading Strategies | Quantra Course

Ready to go from trading intuition to AI-driven, backtested, and automated strategies? Join the AI AlgoTrader Bootcamp (4-day, 16-hour live workshop) and learn Python-based strategy building, responsible ML, risk management, agentic AI workflows, and how to eliminate hidden biases. Enroll now (limited seats, starting soon): https://www.quantinsti.com/algorithmi... . . Welcome to this video lesson on the different types of momentum. After completing this, you will be able to explain time series momentum and cross-sectional momentum. You can exploit momentum in two ways which are time series momentum and cross-sectional momentum. In time-series momentum, the performance of a price series is compared to its past performance. In contrast, in cross-section momentum, the performance of a price series is compared relative to the other price series in a portfolio. Let's say you have 10 stocks in a portfolio. You want to create a strategy using time series and cross-sectional momentum. You calculated returns of all stocks for the past 1 year. In time-series momentum, you buy the stocks that have returns above a certain level, say 5% over 1 year. You sell the stocks that have returns below a certain level say -5% over 1 year. In cross-sectional momentum, you rank all stocks in a portfolio in descending order based on returns over 1 year. You buy the top 5 stocks and sell the bottom 5 stocks. You can observe that in time-series momentum, we used absolute performance of stocks over some prior period. While in cross-sectional momentum, we used relative performance of stocks over some prior period. Most of the securities exhibit cross-sectional or time-series momentum. Usually, we look at the price chart for the duration of one year to see momentum. It is observed that if we look at the past month only, it exhibits a mean-reverting property. Thus, institutions skip the latest month. Let us now list some differences between time series and cross-sectional momentum. You can pause the video and read these points if interested. Quantra is an online education portal that specializes in Algorithmic and Quantitative trading. Quantra offers various bite-sized, self-paced and interactive courses that are perfect for busy professionals, seeking implementable knowledge in this domain. Find more info on - https://quantra.quantinsti.com/ Like us on Facebook:   / goquantra   Follow us on Twitter:   / goquantra