Unlocking Profit Potential: New Insights into Trading Strategies Revealed
The article examines different trading strategies to see which ones make money. Less than half of the strategies tested actually work. Momentum strategies tend to make money over 3-12 months, while contrarian strategies work better over longer periods, but only in a specific time frame. The variation in returns of individual stocks is crucial for the success of these strategies. This variation helps momentum strategies make money and reduces profits for long-term contrarian strategies.