009: Gary Antonacci discusses the different types of momentum to use them in trading [AUDIO ONLY]

Dual momentum investing strategy explained: how combining relative and absolute momentum delivered 17%+ annual returns over 40 years with half the drawdown. ► Full article: https://bettersystemtrader.com/009-ga... In this episode: • The difference between relative momentum and absolute momentum and why each does a different job • How the Global Equity Momentum model works - and why it takes less than five minutes a month to run • Why a 12-month lookback is robust across different parameter settings and what happens if you shorten it • Why momentum should keep working as long as human beings are making trading decisions 0:00 Introduction 1:22 Gary's background and the Dee story that changed his thinking 6:06 From stock options and hedge funds to discovering momentum research 9:03 What dual momentum is and how relative strength meets trend following 10:59 How the Global Equity Momentum model works in practice 13:44 Performance: 17%+ annual returns vs 10% for the S&P 500 over 40 years 14:39 The 12-month lookback: why it works and what changing it costs you 19:00 Where the excess return actually comes from 26:00 The biggest challenges: sticking with it and resisting the urge to tinker 32:00 Why momentum should persist: the behavioral case Related episodes: • The magic of momentum trading - Alan Clement:    • The magic of momentum trading - Alan Clement   • The new indicator that improves momentum trading signals - Alex Spiroglou:    • The new indicator that improves momentum t...   • Perry Kaufman on market noise and strategy selection:    • 010 Perry Kaufman talks market noise, pric...   Gary Antonacci's dual momentum investing strategy won back-to-back first and second place awards from the National Association of Active Investment Managers in 2011 and 2012. The model combines cross-sectional relative strength, selecting the stronger of US or non-US stocks, with time-series absolute momentum, which moves the portfolio to aggregate bonds when equity trends turn negative. Back-tested over 40 years, the Global Equity Momentum model averaged over 17% per year with maximum drawdowns around 20%, compared to over 50% drawdown for buy-and-hold equity investing. --- ► Better System Trader: https://bettersystemtrader.com ► Follow on X:   / bettersystrader   #SystematicTrading #MomentumInvesting #TrendFollowing Trading in the financial markets involves a substantial risk of loss. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. ---