e know that "The Trend is your Friend," but does that apply to factors as well? If Value has been outperforming for the last six months, is it likely to continue? Welcome to the world of Factor Momentum.
Most traders fail with Momentum because they only look at price action. But what happens when the underlying "Factor" rotates? In this video, we reveal why Factor Momentum is often the "missing link" in quantitative portfolios. We’ll discuss the "Lead-Lag" effect, why factor trends are more persistent than individual stock trends, and how to avoid the common pitfalls of overfitting your strategy to past data.
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