🎯 19 Backtested Strategies

Trading Strategies, Explained

Every Momentum Lab strategy scores stocks using a weighted blend of momentum, trend, volatility, and volume factors. Here's exactly what each one looks for and how it differs from the rest.

Momentum Strategies

Strategies that rank stocks primarily on the strength and persistence of recent price moves.

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Momentum Pure

Leans almost entirely on price momentum, weighting 3-month and 1-month rate of change alongside proximity to the 52-week high. Built for traders who want the most direct, unfiltered read on which stocks are moving the hardest right now.

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Momentum Trend

Combines the same momentum core with trend confirmation from 50/200-day and 20/50-day moving average crossovers. Filters out momentum that isn't backed by an established uptrend.

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Quality Momentum

Blends longer-horizon momentum (3 and 6 month returns) with a penalty for high volatility and a trend confirmation factor, favoring stocks moving up in a steadier, higher-quality way.

Swing & Breakout Strategies

Shorter-horizon strategies built around price swings, chart breakouts, and volume confirmation.

Swing Trader

Weighs 1-month momentum, MACD histogram, RSI positioning, and Bollinger Band location together to capture short-to-medium-term price swings rather than long-running trends.

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Breakout

Prioritizes stocks pushing toward new 52-week highs on above-average volume and widening Bollinger Bands — a classic setup for stocks breaking out of a prior trading range.

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Volume Breakout

Puts volume ratio front and center, then confirms with proximity to the 52-week high and recent price action. Designed to catch moves that are backed by real participation, not just price drift.

Risk-Aware Strategies

Strategies that explicitly reward or require lower volatility alongside price performance.

⚖️

Volatility Adjusted

Divides momentum by 20-day volatility, so a stock only scores well if its returns are strong relative to how much it whips around — rewarding momentum earned with less risk.

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Low Volatility

Almost entirely defensive: it favors the lowest 20-day volatility and ATR-to-price readings, with a smaller allowance for medium-term momentum and tighter Bollinger Band width.

Value & Trend Blends

Strategies that pair momentum with value, distance-from-low, or stability characteristics.

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Value Momentum

Blends medium-term momentum with distance above the 52-week low and Bollinger Band positioning, favoring stocks that are recovering and trending up rather than chasing names already stretched to the upside.

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Trending Value

Centers on distance from the 52-week low and 50/200-day trend confirmation, with a contrarian tilt against very short-term spikes — designed to surface undervalued names just beginning to trend.

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Dividend Momentum

Combines 3-month momentum with a preference for lower volatility and tighter Bollinger Band width, targeting the kind of steadier, lower-drama price behavior typical of dividend-paying names.

Reversion & Contrarian Strategies

Strategies that bet against short-term price extremes rather than chasing them.

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Mean Reversion

Inversely weights short-term rate of change and Bollinger Band position while rewarding elevated RSI, looking for stocks likely to pull back toward their average after a sharp short-term move.

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Contrarian

Scores stocks higher the further they sit from a 1-month high and the more oversold their RSI, while still requiring positive longer-term momentum — a counter-trend entry filtered by underlying strength.

Advanced Strategies

Additional quantitative models covering mean-reversion, crossovers, squeezes, and gap plays.

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RSI Mean Reversion

Buys oversold stocks and sells overbought ones by heavily weighting deviation from the RSI 50-midline, combined with short-term rate of change and Bollinger Band width to catch sharp reversals.

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EMA Crossover

Pure trend-following built around MACD histogram momentum, confirmed by 21-day rate of change, the 20/50-day moving average slope, and volume — the classic crossover system in quantitative form.

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Quality Growth

High momentum combined with low volatility — targets stocks that are rising steadily without excessive price swings. Weights 63-day and 126-day momentum positively and annualised volatility negatively.

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Gap & Go

Captures explosive gap-up moves by scoring stocks on short-term rate of change, volume confirmation, Bollinger Band positioning, and ATR — designed for stocks making strong, volume-backed breakouts.

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52-Week Low Bounce

Identifies stocks near their 52-week low showing early reversal signals — rising from the low with increasing volume and improving RSI. A dedicated low-bounce strategy distinct from general contrarian approaches.

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Bollinger Squeeze

Targets stocks with narrowing Bollinger Bands (low BB_Width) — a classic setup that often precedes explosive moves. Combines band contraction with volume confirmation and medium-term momentum.

See These Strategies in Action

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