How to know when to start or stop the momentum trading strategies?
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Hello @Prashant-Shah Sir,
How do we determine when is the right time to start or stop the momentum trading strategies? In case there is no answer to this then how do we protect our momentum portfolio during market downturns like we are seeing now? -
adequate divercified portoflio with proper position sizing (minimum 2%,maximum 5% allocation),follow backtestd model,follow proper entry exits,have diverified stock universe which gives good stocks -as every market will have both kind of stcoks up-down and expect old leaders will loose their leadership and new leaders will appear
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Agree @Nishshkumar-Jaani-CFTe Sir but this question was specific to the momentum portfolio and not the overall portfolio.
Is there a way to know when to start-stop this strategy based on certain market conditions perhaps?
And can we connect separately this weekend pls? Will discuss this and more. -
you can use ratio chart and find if bond is outperforming you should stop deploying in equity
or can put fixed sl on equity tickers also backtest on the the idea -
@Nishant Paul Yes. ratio charts against other asset classes is what I have in mind going forward. I am just exploring what other options there can be.
And yes, I do keep fixed SL as well. -
I backtest without sl and it worked good for me all i neeed to do follow system blindly
