Re: Momentum

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In Reply to: Re: Momentum posted by Bill on December 13, 2003 at 14:26:40:

: : : : : Mark,
: : : : : Thanks again fot the great product, have used it for years! I'm a momentum investor with mutual funds and have been unable to make a custom report that will work. Under the Fund Performance yield report I use the 1m,3m,6m,1y yields, it would be nice to have a "MOM" selection that you could take the sum of the selected yields and divide by the total number of yields selected. Does this make sence, or is it possible?

: : : : : Oh, I do like that I can sort the report using the differnt yield elections, just figured that out!

: : : : : Thanks,

: : : : : Bill

: : : : Hi Bill,

: : : : This doesn't sound like something you can in Fund Manager today. Does "MOM" stand for something? It sounds like
: : : : you're looking for an average of all the yields?

: : : : Thanks,
: : : : Mark
: : : : --
: : : : Mark Beiley
: : : :
: : : : Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP
: : : :

: : : Hi Mark,

: : : Yes, I'm looking for an average of the yields. "MOM" was what I was calling the average, stands for momentum.

: : : Thanks,

: : : Bill

: : Hi Bill,

: : Thanks for the explanation. Is this something commonly used? I haven't
: : heard of it before. Is there somewhere I can read about using this for
: : momentum trading?

: : Thanks,
: : Mark
: : --
: : Mark Beiley
: :
: : Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP
: :

: Hi Mark,

: I'll try this again, Momentum or udgrading is a common strategy. It is used by No Load Fund X and Sound Mind Investing. You basically take an average of the sum of the yields. It helps to show when a fund is hot and when it starts to cool off. A formula would be MOM=1m+3m+6m+1y/4, with your program you could use any assortment of yields that you would like, ie., at SMI they do not normally use the 1m yield in their MOM formula. Its a good tool if you can add it to the "Fund Performace Yield" report.

: Thanks,

: Bill

Mark,

After doing more study on your reports, it looks like the 1m,3m,6m are annualized instead of the actual yields for the period. It is much more useful to have the actual yields for the period, that way when you figure the momentum it gives a clearer picture of what the fund is doing. Thiswould also be true of the CPR value (see fax I sent to you.)

Thanks,
Bill

Replies:

• Re: Momentum Mark 20:53:25 12/13/03 (0)