@ChaitanyaC You are right. When overall liquidity decreases, money flow is no longer there, that time number of stocks doing fresh 52 week high or All time high decreases. Overall market starts declining in that scenario. So whether you are a value investor, Deep value, Growth, GAAP, GARP, all the strategies will suffer that downfall. Everybody will go down. So no surprise that momentum strategies will also suffer. But in quantitative momentum, you will have a way out of market.The strategy will automatically will push you into cash. While in buy and hold strategies, you will keep on holding and bearing the whole downturn. That way, contrary to popular belief, quantitative momentum will by design have lower drawdowns. In case of breakout strategies, which many members here follow, like @hitesh2710 , they have experienced in 2018, in such low liquidity bearish market, breakout patterns fail consistently and its very frustrating. Also in quantitative momentum @visuarchie , as market starts turning from bear phase to bull phase, you are automatically pulled into buying stocks when overall index starts coming up above 200 day moving average. So overall strategy itself forces you out, when market is not favourable and it also invites you in, when tide turns. You dont have to have any selective bias of entering and exiting.
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