Does systematic momentum investing actually work in India? Built a tool to find out [feedback welcome]
Been going down a rabbit hole on momentum investing for a while now. The research is pretty compelling, stocks that have outperformed over the past 6–12 months tend to keep outperforming for a few more months. This has been replicated across 40+ markets including India. Yet most of us still invest based on tips, news or vibes.
So I tried building something simple around this - Pick Momentum. Think of it as an experiment more than a finished product.
What it does:
- Scans the full Nifty 500 universe monthly
- Ranks stocks across 4 strategies: Classic Momentum, Risk-Adjusted Momentum (Barroso & Santa-Clara), Dual Momentum (Antonacci), and 52-Week High (George & Hwang)
- Outputs a 15-stock portfolio with suggested allocation and share quantities
- Tracks month-on-month rebalancing & tells you what to buy, hold, and exit
- Has a market regime filter (Nifty 50 vs 200-DMA) so you're not deploying in a downtrend
The whole rebalancing workflow takes about 10 minutes at. It's free, no login, runs on Streamlit for now - link in comments (don't want to get flagged for self-promo).
I'm also attaching a strategy guide that covers the academic research behind each strategy if anyone wants to go deeper.
Honest caveat: this is not investment advice, past performance of these strategies doesn't guarantee anything, and momentum crashes are very real. Please do your own research before putting real money behind any of this.
Curious what the community thinks. Has anyone here run systematic momentum strategies on Indian stocks? What's been your experience?