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At first glance, last week wasn’t a good one in which to start a momentum trading strategy; research indicates that buying the five shares from the FTSE 350 that returned the largest percentage amount during 21-28 March would have returned 5%. However, buying the winners of the week during 28 March to 4 April would have returned -2.5%. As a reminder the winners from that week were:
These five almost all faltered last week, with only Evraz rising 1.8%. This is a useful reminder that no strategy will always be successful. However, I intend to keep this strategy running to see what lessons, if any, can be gained.
For the week ahead, we’ll keep an eye on the top five winners from the week 4 April to 11 April. These are: