What is Momentum Trading?
Momentum investing means buying assets that are rising and selling those that are falling. Our strategy rotates across 19 themes to find the strongest uptrends.
Momentum investing is one of the most well-documented phenomena in financial markets. The core idea is simple: assets that have been performing well recently tend to continue performing well over the next few months, and assets that have been underperforming tend to continue lagging.
This effect — sometimes called the momentum premium — has been observed across stocks, bonds, commodities, currencies, and even real estate going back over a century of market data. It was formally documented by academics Jegadeesh and Titman in 1993 and has held up in peer-reviewed research across virtually every major market.
Why does momentum work?
There are two leading explanations. The first is behavioural: investors systematically underreact to new information, causing prices to adjust slowly rather than instantly. Early movers earn excess returns as the rest of the market catches up. The second is risk-based: high-momentum assets often carry genuine economic risk that justifies a return premium.
In practice, both are probably true. What matters for our strategy is that the pattern is persistent and tradeable.
How our strategy uses momentum
Rather than picking individual stocks, we rotate capital at the theme level. We rank 19 broad market themes (ETFs + BTC + ETH) by their 16–26 week price momentum, then apply an EMA 10/100 trend filter to confirm the uptrend is genuine before allocating. Capital flows into the top 1–2 qualifying themes each rebalance.
The result is a concentrated portfolio of 1–2 high-momentum themes, rebalanced weekly (Balanced) or monthly (Growth). No discretionary guesswork — just price data, systematic rules, and discipline.
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