Momentum Trading Strategies

Yes, you will be awarded with a certification from QuantInsti after successfully completing the online learning units.

No, there are no live or classroom sessions in the course. You can ask your queries on community and get responses from fellow learners and faculty members.

Yes, you can ask your queries related to the course on the community: https://quantra.quantinsti.com/community

Fast-speed internet connection and a browser application are required for this course. For best experience, use Chrome.

There is no admission criterion. You are recommended to go through the prerequisites section and be aware of skill sets gained and required to learn most from the course.

We respect your time, and hence, we offer concise but effective short-term courses created under professional guidance. We try to offer the most value within the shortest time. There are a few courses on Quantra which are free of cost. Please check the price of the course before enrolling in it. Once a purchase is made, we offer complete course content. For paid courses, we follow a 'no refund' policy.

Some of the course material is downloadable such as Python notebooks with strategy codes. We also guide you how to use these codes on your own system to practice further.

We focus on teaching these quantitative and machine learning techniques and how learners can use them for developing their own strategies. You may or may not be able to directly use them in your own system. Please do note that we are not advising or offering any trading/investment services. The strategies are used for learning & understanding purposes and we don't take any responsibility for the performance or any profit or losses that using these techniques results in.

Quantra environment is a zero-installation solution to get beginners to start off with coding in Python. While learning you won't have to download or install anything! However, if you wish to later implement the learning on your system, you can definitely do that. All the notebooks in the Quantra portal are available for download at the end of each course and they can be run in the local system just the same as they run in the portal. The user can modify/tweak/rework all such code files as per his need. We encourage you to implement different concepts learnt from different learning tracks into your trading strategy to make it more suited to the real-world scenario.

No. We provide you guidance on how to create strategy using different techniques and indicators, but no strategy is plug and play. A lot of effort is required to backtest any strategy, after which we fine-tune the strategy parameters and see the performance on paper trading before we finally implement the live execution of trades.

You can learn with or without coding knowledge. If you would like to do the analysis on excel, we would suggest you to start with course on Statistical Arbitrage in Trading. You can create and test your trading strategies using excel.

Alternatively, you can do the course on Python for Trading which will help you gain knowledge in all these fields: Python, Analysis and Financial markets.

Lifetime access means that once you enroll in the course, you will have unlimited access to all course materials, including videos, resources, readings, and other learning materials for as long as the course remains available online. There are no time limits or expiration dates on your access, allowing you to learn at your own pace and revisit the content whenever you need it, even after you've completed the course. It's important to note that "lifetime" refers to the lifetime of the course itself—if the platform or course is discontinued for any reason, we will inform you in advance. This will allow you enough time to download or access any course materials you need for future use.

Selecting an indicator can be subjective and depends on the individual’s risk profile. However, the following are three popular momentum indicators.
Moving Average Convergence Divergence (MACD):
MACD is the difference between two Exponential Moving Averages of different time periods.
The Signal line is an Exponential Moving Average of the MACD.
When the MACD line crosses above the signal line a buy signal is generated. When the MACD crosses below the signal line a sell signal is generated.
Relative Strength Index (RSI):
The Relative Strength Index (RSI) calculates a ratio of the recent upward price movements to the absolute price movement. The RSI ranges from 0 to 100. Generally, if the RSI of an asset is over 70, it is interpreted as overbought. Similarly, if it is below 30, the asset is considered oversold.
ADX Indicator:
The ADX indicator is part of the directional indicator, consisting of the following components: the True Range, Smoothed Plus Directional Indicator (+DI) and Smoothed Minus Directional Indicator (-DI).

In time-series momentum, the performance of a price series is compared to its past performance. Typically we analyse the returns of an asset for a year. If the asset has a positive return more than a set percentage, we classify it as a winner. If the asset has negative returns, we classify it as a loser.
While building a momentum trading portfolio, we will have a long portfolio which contains winners and a short portfolio which contains the losers. The criteria for selection of stocks depends on the traders’ risk profile as well as the optimal lookback and holding period for an asset class.

The Hurst exponent is used to study self-similarities or long term correlation in time series. The value of Hurst exponent lies between 0 and 1. Based on the values, the time series can be random, mean-reverting or trending. A Hurst value between 0 and 0.5 indicates mean-reverting or anti-persistence time series. A Hurst value close to 0.5 indicates that the time series is a random walk. This means that there is no correlation between current and future observations. A Hurst value greater than 0.5 indicates trending or persistence time series.

Momentum trading can be used in intra-day trading as well as short term trading covering a time period from days to months.

While traders generally believe momentum exists only in stocks, we have found trends in treasury bonds, commodities, as well as futures. These strategies are covered in our course.