6 Steps to build momentum portfolio | What is a momentum portfolio? | How to measure momentum?

A momentum strategy seeks to identify trend and persistence in stock returns and build a portfolio of it. The idea is that stocks that have been performing well are more likely to continue to perform well in the future. There are a number of ways to construct a momentum portfolio. One common approach is to use moving averages and another approach is by constructing a momentum portfolio using relative strength analysis.
In this video, we discuss 6 steps to construct a momentum portfolio. If you are interested in learning more about momentum portfolios, this video is for you. By the end of the video, you will have a good understanding of how momentum portfolios work and whether or not they are a good fit for your investment portfolio.
Time Stamps
00:00 Introduction
00:46 What is a momentum portfolio?
02:24 How to measure momentum?
03:25 Illustration
04:25 Time period of momentum
05:02 Steps to build momentum portfolio
05:22 Step 1 Define your tracking universe
07:32 Step 2 Clean closing price data
07:57 Step 3 Daily returns of the stocks
08:04 Step 4 Rank the stocks in the tracking universe
08:34 Step 5 Building momentum portfolio
09:44 Step 6 Rebalancing momentum portfolio
10:47 Conclusion
Links to Refer
Learn more about the stock market here: zerodha.com/varsity/chapter/m...
Other Trading Strategies
zerodha.com/varsity/module/tr...
Impact of corporate actions on derivatives, company balance sheet and how to adjust historical data
• Impact of corporate ac...
Other Important Links
You can put your stock market knowledge to the test by taking the Varsity Certification test here: zerodha.com/varsity/certified/
Open Zerodha Account - zerodha.com/open-account?c=ZM...
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[@demudubabus6968]

Thank you for simple and clear explanation

[@kevalkumar9694]

Very useful Sir, Can you help viewers by giving an example 'End to End' from start to end with back testing for a Momentum portfolio making (stocks example and back test for 2 years) please

[@ManojKumar-bj3fn]

Thank you Karthik Sir. ur explanation was very detailed

[@ravindranag3645]

Thank you Karthik. Very well explained & covered major topics on Momentum in a very detailed manner. Looking forward to more such insightful videos from Varsity (The Stock Markat Knowledge Hub).

[@navanu100]

Thanks Karthik for explaining stock market. Need more such insights from your end

[@xyz28195]

This is called real video on momentum trading, keep up the good work 👍

[@prasadsalunkhe6761]

Great information!Thank you

[@sanjithbrotherajith]

Sir ...Really wonderful infirmation....post more vedio such like this vedio...

[@markman1276]

Very nice thank you

[@subodhkumar-yw6yj]

Waiting for more videos😊

[@mallilkarjunyolabhavi9736]

Very well explained, do more videos on strategy indices.. ex low volatility, alpha, quality etc

[@amar23]

Sir,please guide what to do when we bought momentum stocks & suddenly market trend changes to choppy.Sell or hold until rebalance ?

[@arijitmallick7058]

Sir it is my earnest request to u to make videos on topics which is left untouched and are given only modules, 1) option strategies ---chapter 6 2) currency,commodity and govt securities ---chapter 8 3) trading system ---chapter 10 of zerodha. Pls try to make videos on these sir,it will be a lot of help

[@tradewithaakash2939]

awesome educational video

[@dhilipraj5197]

By using chat GPT how to create Momentum portfolio stocks in live example it will helpfull

[@rahulbansal7216]

Nice video. Couple of questions: 1. From where to get data for past 12 month daily prices? 2. How to backtest exactly?

[@shoaibansari9989]

nse website

[@HrishikeshAgarwal]

Tradingview

[@vishweshwar4uvish]

How to clean data to incorporate corporate actions?

[@monusinghyadav6286]

Sir nomiee nhi bar rha

[@rammohan9779]

👍👏👏👏👏👏🙏

[@StotraTirtham]

Kartik ji! Kabhi aapne apne khud ke video dekhe/ sune Hain? Upload hone ke bad! Please ek bar dekhiye to apko pata chalega ki background sound/ music Jo bhi hai uske Karan content sunne/samjhane me kya dikkat ATI hai. Thank you

[@knayak6062]

Why not just use 1yr ROC indicator to rank the stocks instead of doing all the calculations?

[@StotraTirtham]

Why background music! Please

[@ramsakal8290]

Please make in hindi language also

[@vigneshpalanivel4973]

ஹிந்தி தெரியாது போடா 😂

[@AmitKumar-vv4bb]

Sir app video ko hindi me nhi bna skte ? Me app ki video dekhta hu lekin 40-45 % hi smjme ati h sirf please sir app bhi aastha khurana mam ki trha video bnaiye na me mam ki bhi video dekhta hu I hope app dhyan denge ispe thank you 🙏🙏❤❤

[@rajeshr6195]

Rebalancing is where zerodha earns money for this information.

[@videoview5179]

Much More money goes as STT and misc taxes

[@GudduYadav-hz6gy]

Please sir make a hindi channel please please please please please please please

[@StotraTirtham]

Have to let it go in middle of the video because of that annoying background "kachra" sound.