Dual Momentum Trading Strategy (Gary Antonacci) – Video, Rules, Setup, Backtest Analysis

The dual momentum trading strategy by Gary Antonacci, what is that about? As the Oracle of Omaha, Warren Buffett, once said: “Trying to time the market is the number one mistake to avoid.” It is almost impossible to consistently time the market — you will either be buying or selling too late or too early rather than at the right time, which is why many professional investors advise against that. One method that has offered a way to spot and get into the right trend is Dual Momentum.

The dual momentum trading strategy by Gary Antonacci is a method of investing that selects only assets that have outperformed their peers over a given time and also making positive returns. It is based on the idea that an asset with a superior relative momentum and a positive absolute momentum would continue to perform until another outperforms it. Thus, it is a sort of trend strategy.

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To help you understand the topic, we will discuss it under the following headings:

What is dual momentum?

Dual momentum investing strategy uses two kinds of momentum to determine which security to buy and when to do that.

The strategy got its name from the fact that it uses two types of momentum in its analysis. It compares the current momentum of two or more financial securities and chooses the one with the greatest momentum and then compares that with what it was in the past.

That is to say, the dual momentum approach seeks to invest in an asset only if it is performing better than its peers over a given period and has a positive (upward) momentum at the same time. It, therefore, does not aim to buy the best among losers; it only aims to buy the best among the performers.