Momentum Period

In the momentum investing method, stocks are ranked based on their performance, which is measured over a specific period.

The key question is: Over what period should performance be evaluated?

Research suggests that a one-year period is generally an effective measure for calculating stock performance. Our own findings also support this as the recommended period.

Since a year consists of 365 days, we express it in terms of daily active sessions to align with other market studies. In trading terms, a one-year period translates to 252 trading days. However, this period can be adjusted based on your analysis.

Some momentum investors also use shorter periods, such as 120-day, 90-day, or 60-day windows. Others prefer to analyse multiple periods simultaneously.

On the Momentify platform, you can select multiple periods by clicking the checkbox next to the period selection. If more than one period is chosen, stocks are ranked based on their annualized average returns across the selected periods.

252-day is a recommended period for ranking Momentum investing portfolio stocks.