Momentum trading is one of the first things that many people think of when approaching quantitative finance. The idea is that investors will prefer to buy stocks that have been performing well, driving prices still higher, and will shy away from stocks with recent price drops, leading to less demand and further price decay. It is an intuitive way of modeling asset prices, and works in some cases. In this lecture we will discuss how to determine if a momentum model is appropriate for a given case, and ways to use that model to execute trades. This talk is part of Quantopian’s Lecture Series. All lecture materials can be found at: www.quantopian.com/lectures. Quantopian provides this presentation to help people write trading algorithms - it is not intended to provide investment advice. More specifically, the material is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by Quantopian. In addition, the content neither constitutes investment advice nor offers any opinion with respect to the suitability of any security or any specific investment. Quantopian makes no guarantees as to accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.
Visibility: 3197
Duration: 46m 12s
Rating: 24