How to Build a Systematic Relative Momentum Trading Strategy

Nick Radge, The Chartist, discusses How To Build A Systematic Relative Momentum Model
About Nick Radge:
As you can tell by my accent, I am an Australian and I started trading in 1985, so just finished my 34th year of trading. I started on the trading floor, the Sydney futures exchange, and then I worked on dealing desks in Sydney, London, and Singapore.
For the first 17 years, I traded only futures and I actually ran my own futures hedge fund up until 2001 and then I switched into equities and I'll manage money up until 2016.
Now I trade six different systematic strategies. I don't look at the charts, I don't draw any trendlines. There's no Fibonacci’s or there's no chart patterns or anything like that. It's all algorithmic trading.
I literally just put my account balance into the model, push the button, it generates the orders, does a position sizing and does everything else. And the six strategies that I trade encompass trend following, which we'll be talking about today, and also mean reversion.
And I guess the way I like to talk about that is rather than run a portfolio of stocks that is common and what most people do, I run a portfolio of systems and they tell me what to buy and sell.
So today I'm going to explain why I don't trust analysts or financial advisors or certain industry types. I'm going to explain to you why there's a very real casualness to risk and why that's dangerous, especially to new investors and traders, which I'm sure some of you are.
I'm going to introduce you to systems trading and, literally, show you the kind of things I do. And today I'm going to fully disclose a momentum strategy.
Now, I personally try 2 of these, and what you're going to be seeing today is not too far different from how I manage my own money and how I've done it for, for several decades now.
Visit The Chartist at www.thechartis...

[@jeroencommandeur]

No position is a position. I like that. 🙂

[@xilllllix]

fantastic presentation! i downloaded this in case this goes missing in the future (i hope you don't mind) and so i can re-watch this every now and then

[@cyberspider78910]

Hi Nick. Nice variation of strategy called The Dogs of The Dow. Thanks...it is nice to know this works since 1929 but now on monthly basis as we have high speed computers now

[@RM-_]

Hi Nick. I have purchased most of your books, including your book Weekend Trend Trader. If I am not mistaken, in that book portfolio rebalancing is not discussed. What strategy would you recommend?

[@richardlionheart3965]

How did Covid work out with a monthly hold period? weekly would see to be more reactive but comes with much higher trading costs

[@tonynguyen36]

Yes nick all day

[@jmoz]

Legend.

[@sachins1986]

Why these momentum people have low subscriber. even after being so good

[@TheChartistAU]

How many RUclips subscribers would you expect us to have?

[@infinitewisdom4557]

Thats great. Answer his question with a question... if I'm not mistaken the OP is demonstrating praise!

[@mainaccount1025]

42-43 minutes