You can now add momentum into your strategies on Forwardcaster. There are two main ways to do this:
- Rank the universe
Ranking the universe will target the companies in the order you have ranked and work its way either up or down the list based on the criteria you have chosen.
For example, if you have chosen the 52-week high as your criteria, our engine will select stocks which are currently at their 52-week high point and target those stocks first according to whatever other criteria you have entered. This approach targets the companies the market has shown increased confidence in over the past year and therefore helps capture stocks which are trending upwards.
- Insert moving average crossovers
Use moving average cross-overs to capture stock trends (i.e. use either the 200DMA, 150DMA, 100DMA, 50DMA and 20DMA). E.g. you may want to create a strategy which buys stocks trading above their 200DMA. To do this you would insert this criteria:
“buy stocks whose current price is greater than 200DMA”
our engine will buy stocks at the crossover point (i.e. when the current price is higher than the 200DMA).
Then to sell stocks on the way down, you would insert this criteria:
“sell stocks whose current price is less than the 200DMA”
This sells those stocks as the price dips below the 200DMA.
Finally, you can use our decile ranking funtionality to test whether or not momentum or a combination of momentum and value works for your market.
Currently, we support the NZX, ASX, and NASDAQ.
Sign up free to start testing today! No credit card is required.