The following are some examples of momentum strategies:
- Moving average crossover: This momentum strategy principle revolves around calculating the moving average for a price of an asset and detecting when the price moves from one side of a moving average to the other. This means that when the current price intersects the moving average, there is a change in the momentum. However, this can lead to too many momentum changes. To limit this effect, we can use the dual moving average crossover.
- Dual moving average crossover: Because we want to limit the number of switches, we introduce an additional moving average. There will be a short-term moving average and a long-term moving average. With this implementation, ...