{"id":5187,"date":"2024-06-04T00:05:24","date_gmt":"2024-06-04T00:05:24","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/06\/04\/visualizing-the-holdings-for-a-dual-momentum-rotation-strategy\/"},"modified":"2024-06-04T00:05:24","modified_gmt":"2024-06-04T00:05:24","slug":"visualizing-the-holdings-for-a-dual-momentum-rotation-strategy","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/06\/04\/visualizing-the-holdings-for-a-dual-momentum-rotation-strategy\/","title":{"rendered":"Visualizing the Holdings for a Dual Momentum Rotation Strategy"},"content":{"rendered":"<div>\n<p>As the name suggests, Dual Momentum Rotation Strategies focus on stocks that are in absolute and relative uptrends. This is a two-step process. First, filter out stocks that are in long-term downtrends and only focus on stocks in uptrend. Second, rank the stocks by a performance indicator and focus on the strongest. Note that <a href=\"https:\/\/trendinvestorpro.com\/subscribe-system-trader\/\" target=\"_blank\" rel=\"noopener\">TrendInvestorPro runs two Dual Momentum Rotation Strategies.<\/a> <\/p>\n<p>Traditional trend-following indicators, such as the 200-day SMA, measure absolute momentum. For example, a stock is in a long-term uptrend when above its 200-day SMA. Stocks trading below their 200-day SMAs are in long-term downtrends and do not make the cut for the second step.<\/p>\n<p>For stocks in long-term uptrends, chartists can then quantify performance using the 200-day Rate-of-Change and comparing values to find the strongest. A stock with a 49% Rate-of-Change is stronger than a stock with a 19% Rate-of-Change. <\/p>\n<p>The image below shows CandleGlance charts for the top Nasdaq 100 stocks. They are ranked by the 200-day Rate-of-Change (ROC(200)). \u201cAdd indicator\u201d is Rate-of-Change 200 and \u201cSort by Indicator\u201d is Descending (red outline). These 12 are also above their 200-day SMAs (red lines) and in long-term uptrends. <\/p>\n<\/p>\n<p>As the green ovals show, Nvidia (NVDA), Crowdstrike (CRWD) and Constellation (CEG) are up over 100% the last 200 days and the other nine are up 50% or more. Chartists running a Dual Momentum Rotation Strategy would be focused on these leading names when constructing a portfolio. Strength begets strength. <\/p>\n<p>We use a similar process for our Dual Momentum Rotation Strategies at TrendInvestorPro. Instead of raw Rate-of-Change, we use a volatility-adjust version to level the playing field. NVDA, CRWD and CEG are part of the current portfolio for the Nasdaq 100 strategy. We also have a separate strategy for S&amp;P 500 stocks. Both strategies are off to a great start this year and you can view <a href=\"https:\/\/trendinvestorpro.com\/subscribe-system-trader\/\" target=\"_blank\" rel=\"noopener\">full performance metrics here. <\/a><\/p>\n<p>\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As the name suggests, Dual Momentum Rotation Strategies focus on stocks that are in absolute and relative uptrends. This is a two-step process. First, filter out stocks that are in long-term downtrends and only focus on stocks in uptrend. Second, rank the stocks by a performance indicator and focus on the strongest. Note that TrendInvestorPro [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":5188,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5187","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=5187"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5187\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/5188"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=5187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=5187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=5187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}