“let me ask follow up question…how this method can be improved/tweaked for bear market/sideway market.”
Momentum, by definition is following the trend, in this case, the automated approach helps in identifying the best among the lot.
In bear markets, when you get to the irrational extreme, it will be prudent to book out of momentum and chase good stocks whose valuations must have corrected.
Remember, there is a very thin line between momentum and trading. Momentum is a systematic trading whose gains can be fed into core portfolios when the valuations are reasonable.
Long answer short, donot try to perfect this method for bear markets, instead work to build on good watchlists which can give you a wide range of shopping options during bear phases
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