Momentum Trading

Short-horizon relative strength: bursts of price+volume (MOMENTUM_BURST_UP) tend to extend over days. The edge decays quickly — this is the highest-maintenance style in this course, and the first one overtrading destroys.

Confirmed by breadth: momentum works in risk-on tapes and dies in churny corrections. Check the leaders, not just your symbol.

MOMENTUM_BURST_UP (outsized up-move on elevated volume) in a name above its rising 50MA; enter on the burst close or the first micro-pullback.

Quick partials into strength (the preset uses +10% target); remainder out on the first heavy red bar or trail break. Momentum unwinds violently — overstaying converts winners to losers.

Tight: below the burst bar's low (~5%). If the burst was real, it shouldn't be fully retraced.

Smaller than usual — volatility is elevated by definition. Risk 0.5%.

Cap simultaneous momentum positions (correlated!), and stand down entirely after 2–3 daily stop-outs — regime's wrong, not the tactic.

Cross-sectional momentum is one of the most robust documented anomalies (see the Factor Ranking lesson/tool); single-name burst-chasing is its wilder cousin — the preset's backtest shows exactly how unforgiving the stops are. Every strategy here maps to this platform's Backtest panel — the matching Strategy Preset fills entry/exit/stops in one click, and every result is benchmarked against buy-and-hold, which most simple strategies LOSE to on strong trenders. Seeing that honestly is the lesson.