Quantitative strategies generally refer to trading and investment strategies that follow a set of rules for:
1
Entering and exiting trades
2
Generating signals for entry and exit decisions
3
Determining whether to go long or short
4
Allocating capital to different securities, strategies (long, short, hedged etc.,) based on calculated risk
5
Setting goals for profit, loss etc.
These rules are typically codified in a computer algorithm that analyzes all the data and makes investment decisions. Individuals who invest also perform such analysis but manually and there is a lot of discretion involved in the manual investment process.
Quantitative Momentum applies quantitative decision making to a set of stocks within an Index (S&P 500/NIFTY 500) that exhibit momentum characteristics to produce returns in excess of the stock market returns