Big Money (84% average annual return!) can be made with Momentum

“Big Money” is a price momentum strategy that’s a direct play on the momentum anomaly. This quantitative strategy excels at identifying stocks that have

gained some traction in the market and are positioned to soar. Specifically, Big Money looks fo

r the 20 best performing stocks that have had the strongest price momentum or appreciation over the last 24 weeks. Those 20 are then cut in half by selecting the 10 best performers over the last 12 weeks. Of those 10, only the top 3 that have had the highest price increase over the last 4 weeks make the portfolio. A low price-to-sales ratio and a “buy” broker rating are also included for good measure. But the price change elements make up the essence of this momentum strategy. Each stock that comes through is displaying impressive price performance which is exactly what a momentum trader desires.

Using weekly holding period returns, this strategy has produced a backtested annual average return of 84% from 2002-2010. Here are the annual details:

Big Money S&P 500

2002 192% -22%

2003 192% 29%

2004 56% 11%

2005 30% 5%

2006 zithromax online 69% 16%

2007 23% 6%

2008 28% -37%

2009 65% 26%

2010 96% 15%

Avg 84% 5%

Furthermore, lesbian porno the compounded annual growth rate for this time period is 74.1% and the backtested results of $10,000 invested at the end of 2001 are below:

 

 

Big black porn videos Money is a strategy that was developed and currently maintained in Zacks’ Research Wizard. Please click here to learn more about the screening and backtesting power of a stock research system built for the individual investor. To learn more about Big Money, please see Kevin Matras’ book titled Finding #1 Stocks: Screening, Backtesting and Time-Proven Strategies (Wiley 2011). Click here for Kevin’s book.

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