Our Proven Trading Strategy

The Momentum Principle

Momentum investing is one of the most researched and validated investment strategies. Academic studies have shown that stocks with strong positive momentum tend to outperform the market over subsequent periods, while stocks with negative momentum tend to underperform.

This effect has been documented across decades of market data and is believed to be driven by behavioral factors such as investor underreaction to news, herding behavior, and the tendency for trends to persist in the short to medium term.

Why Momentum Works

• Trend Persistence: Price trends tend to continue due to investor psychology and market inefficiencies
• Delayed Information Processing: Markets don't instantly incorporate all available information
• Risk-Adjusted Returns: When properly implemented, momentum strategies can deliver superior risk-adjusted returns
• Systematic Approach: Removes emotional decision-making and focuses on data-driven signals

Daily Stock Processing

Our algorithm processes the top 1000 stocks by market capitalization every day. We calculate momentum scores, technical indicators, and risk metrics for each stock in real-time.

Quantitative Ranking

Stocks are ranked by momentum scores calculated across multiple timeframes (30d, 60d, 6mo, 12mo). We combine price momentum with volatility adjustments to identify the strongest opportunities.

Systematic Selection

Top-ranked stocks are selected based on your chosen strategy type and filters. The system automatically identifies the best momentum plays without human emotion or bias.

Momentum + Market Cap

Best for: Traders seeking stability with strong momentum

This strategy combines momentum rankings with market capitalization filtering. It focuses on the largest, most liquid stocks (like Apple, Microsoft, Amazon) that also show strong momentum. This approach provides the stability of large-cap stocks while capturing momentum gains.

• Large-cap focus for reduced volatility
• Momentum ranking prioritizes strongest performers
• Ideal for risk-averse momentum traders

Pure Momentum

Best for: Aggressive traders seeking maximum momentum

This strategy focuses solely on price momentum rankings without market cap restrictions. It identifies the stocks with the strongest momentum signals across your selected index, regardless of company size. This can lead to higher returns but also higher volatility.

• Pure momentum focus—no size filters
• Potentially higher returns
• Higher volatility and risk
• Best for experienced traders

High Growth + Momentum

Best for: Growth-focused momentum traders

This strategy targets high-growth companies with strong momentum signals. It identifies stocks that not only have strong price momentum but also exhibit growth characteristics. This approach seeks to capture both momentum and growth trends.

• Combines momentum with growth metrics
• Targets expanding companies
• Moderate risk-reward profile
• Great for long-term momentum players

Start with Free Backtesting

Test individual stocks using RSI, MACD, and 200-day moving averages. See how momentum indicators work in practice before building strategies.

Build Your Momentum Basket

Select your index, choose your momentum timeframe (30d, 60d, 6mo, 12mo), pick your strategy type (Composite, Pure Momentum, or High Growth), and apply filters.

Backtest Your Strategy

Run historical backtests to see how your basket would have performed. Analyze returns, drawdowns, turnover, and allocation changes over any timeframe.

Execute & Monitor

Connect your brokerage and execute trades. Set up automated rebalancing to maintain your target allocations. Monitor performance and adjust as needed.