Big Tech Momentum
Lets try a Filter and select strategy. In this example, we will look at 9 of the biggest tech stocks from 2015-2022. We will sort them by their performance from the past 20 trading days and buy and hold the top 2.
Does it work?
wow! this strategy got +1301% from the years 2015 to the end of 2021. This strategy performs better than any of the 9 stocks individually! why does this work? Tech companies often have performances that have a bit of momentum, for example maybe they are betting on a new technology or launched a new product and it is paying off, and the market is slowly realizing how well its going, as consumers are buying in and boosting their quarterly revenue. Of course, 2015-2022 was a great time for tech stocks, will this strategy continue to perform well? who knows, its up to you. Maybe you can start with this idea and apply them to different industries, and tweak the performance criteria and parameters.
