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Stocks on the Move: Beating the Market with Hedge Fund Momentum Strategies Kindle Edition
The stock markets are widely misunderstood. Buying and selling stocks seems so simple. We all know what stocks are and what the companies produce. We’re told that stocks always go up in the long run and that everyone should be in the stock markets. Oversimplifications like that can end up costing you.
In the long run, the major stock indexes show a performance of five to six percent per year. For that return, you will have to bear occasional losses of over half your capital and be forced to wait many years to recover your money. Yes, in the long run stocks do go up. But the story isn’t that simple.
Stocks on the Move outlines a rational way to invest in the markets for the long term. It will walk you through the problems of the stock markets and how to address them. It will explain how to achieve twice the return of the stock markets at considerably lower risk. All rules and all details will be explained in this book, allowing anyone to replicate the strategies and research.
Andreas F. Clenow is the chief investment officer and partner of ACIES Asset Management, based in Zurich, Switzerland. Starting out as a successful IT entrepreneur in the 90s boom, he enjoyed a stellar career as global head of equity and commodity quant modeling for Reuters before leaving for the hedge fund world. Having founded and managed multiple hedge funds, Mr. Clenow is now overseeing asset management and trading across all asset classes. He is the author of best-selling and critically acclaimed book Following the Trend and can be reached via his popular website www.FollowingTheTrend.com.
- LanguageEnglish
- Publication dateJune 15, 2015
- File size3.9 MB
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Editorial Reviews
From the Inside Flap
Gregory L. Morris, author of Investing with the Trend, Candlestick Charting Explained, and The Complete Guide to Market Breadth Indicators. Greg writes a blog for StockCharts.com called Dancing with the Trend.
Product details
- ASIN : B00YPHZO3W
- Publisher : Equilateral Publishing (June 15, 2015)
- Publication date : June 15, 2015
- Language : English
- File size : 3.9 MB
- Text-to-Speech : Enabled
- Screen Reader : Supported
- Enhanced typesetting : Enabled
- X-Ray : Enabled
- Word Wise : Enabled
- Print length : 288 pages
- Best Sellers Rank: #192,426 in Kindle Store (See Top 100 in Kindle Store)
- #90 in Stock Market Investing (Kindle Store)
- #154 in Investing Basics
- #341 in Stock Market Investing (Books)
- Customer Reviews:
About the author
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Andreas Clenow is a Swedish Swiss author, asset manager, and entrepreneur based in Zurich, where he is the Chief Investment Officer of a family office. He has been a tech entrepreneur, a financial consultant, hedge fund manager, financial engineer, quantitative trader, financial advisor, board member, and a middle management corporate bureaucrat during his illustrious career.
Customer reviews
Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.
To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. Instead, our system considers things like how recent a review is and if the reviewer bought the item on Amazon. It also analyzed reviews to verify trustworthiness.
Learn more how customers reviews work on AmazonCustomers say
Customers find the book provides an in-depth explanation of the strategy. They find the writing style clear and easy to read for non-professionals. The system works well, with backtested results and no unrealistic expectations. Readers appreciate the value for money and minimal weekly time investment. The book is described as entertaining and humorous at times.
AI-generated from the text of customer reviews
Customers appreciate the book's thorough explanation of the strategy and its logic. They find it a level-headed and well-written guide that builds on similar concepts. Readers describe it as the best book on trading momentum stocks they have seen and ahead of other books on trading.
"...More specifically, here are the standouts for me: - Very specific and detailed rules are presented in the book. Chapter by chapter. -..." Read more
"...but he adds several restrictions and modifications along with risk parity that serve to make using momentum more practical and more useful in actual..." Read more
"...Then like the previous book he takes us through a fascinating year by year review from 1999-2014 of how the strategy would have worked through those..." Read more
"...The author is truly a professional. He’s smart, he writes well, and he presents the evidence and details behind his strategy very clearly...." Read more
Customers find the book easy to read and engaging. They say it provides clear explanations and logical thinking. Readers mention it's one of the best trading books they have read. The book is described as entertaining and educational, with a great model and actionable information.
"...book, "Following the Trend", to be one of the best trading books I have read. I think "Stocks on the Move" is even better...." Read more
"...Other than that I enjoyed reading the book and learnt a few new things and the book is going to stay close to me for a while." Read more
"...That to me is the biggest difference between good and regular books. Finally, the book is rather short, which I like...." Read more
"...Overall, one of the best books I've read on professional equity portfolio construction - highly recommended." Read more
Customers find the book's writing style clear and easy to read for non-professionals. They appreciate the author's down-to-earth approach and simple language that makes many concepts understandable.
"...If you are looking for a well written, and concise, blueprint on how to trade equities this is the book for you...." Read more
"I wish this author wrote more books on trading. Not only because he writes well, but because he provides absolutely all the details behind his..." Read more
"...I have read quite lot about the topic and found many concepts easy to understand. For very experienced, this book does not bring a lot of value." Read more
"...way I have found to calculate position sizing is more effective and easier...." Read more
Customers find the book's performance effective and realistic. They appreciate the simple, intuitive system that works with backtested results. The book provides detailed explanations of how the concepts work with backtested data.
"...take on asset rotation strategies incorporating momentum, and has similar performance, in that it saves your bacon in corrections, and has similar..." Read more
"...toptradersunplugged, Andreas points out that what is simple and intuitive DOES work...." Read more
"...no parameter- or curve-fitting, sound logic, and backtested with cleaned in- and out-of-sample data...." Read more
"...a sound trading strategy which is supported by both logic and backtested results...." Read more
Customers find the book valuable and well worth the money. They say the ongoing weekly time investment is minimal to implement the system.
"...some time up front to implement the system, the ongoing weekly time investment is minimal...." Read more
"...That alone is worth the price of the book...." Read more
"...I decided to write a review because I found this book so valuable...." Read more
"...cups of caffeine a month I am contributing to his energy level is well worth it." Read more
Customers find the book entertaining and humorous at times. They appreciate the simple, witty writing style and logical explanations.
"...- Excellent writing makes this a quick read, and the humor is good. - This is a well grounded book...." Read more
"...some years experience in quant investing and I found this book very interesting...." Read more
"...stock market, whose lessons are organized by a master teacher with a rapier wit, read this one...." Read more
"...which makes this book double great in that it is a fun, funny page turner at times. How often does a finance book achieve that?..." Read more
Customers appreciate the position sizing strategy. They find it adaptable to other indexes and strategies, including selection, entry, exit, and volatility weighting. The book provides alternative choices for each system variable, showing that it has not optimized the system. Additionally, customers mention the author adds several restrictions and modifications along with risk parity.
"...The author does use this approach but he adds several restrictions and modifications along with risk parity that serve to make using momentum more..." Read more
"...Additionally, he presents alternative choices for each system variable to show he has not optimized the system or curve fit just to sell a well-..." Read more
"...a somewhat more elegant way of ranking momentum with an adjustment for volatility, along with addressing turnover..." Read more
"...a stock momentum system, including stock selection, entry, exit, position sizing, etc...." Read more
Top reviews from the United States
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- Reviewed in the United States on June 30, 2015I found Andreas Clenow's first book, "Following the Trend", to be one of the best trading books I have read. I think "Stocks on the Move" is even better. If you are looking for a well written, and concise, blueprint on how to trade equities this is the book for you.
Unlike a lot of trading books that leave you wondering what to do next once you have finished Clenow's book is laser focused on explaining the hows and whys of specific system that you can start using right away. Some assembly is required but beyond that everything is covered.
More specifically, here are the standouts for me:
- Very specific and detailed rules are presented in the book. Chapter by chapter.
- There is a chapter near the end that reviews and presents all the rules in one place. (I wish more books did this)
- Clenow balances the specifics of the rules with the broader concepts. Its not just "do this" but "do this, and here is why this is necessary"
- Rules are explored and challenged to show what is important and what isn't. What happens if you skip this rule? What happens if you use x instead of y?
- An excellent year by year breakdown of the system. While I would encourage someone to buy a separate book that focuses on trading psychology Clenow's approach to talk through the highs and lows of each year is unique and valuable. Do NOT skip this part, and reread it again any time you start to get second thoughts.
- Excellent writing makes this a quick read, and the humor is good.
- This is a well grounded book. Its not trying to create some magical system that will get you rich quick, but instead shows a sane and strong system that could serve you well for many years.
- While one needs to invest some time up front to implement the system, the ongoing weekly time investment is minimal.
If you are looking for a good book on trading equities you would do well to read this one over a weekend.
- Reviewed in the United States on June 21, 2015For those who read the author's Following The Trend, this book will seem quite familiar. However, this doesn't mean that the author simply took the systems he detailed in his first book for managed futures and has now applied it to stocks. Quite to the contrary, he makes it very clear that trend following does not work on stocks! Now this claim is not completely true because the system revealed in this book actually does use a form of trend following to manage positions and the portfolio as a whole to determine whether to be in stocks at all and which stocks to exit.
The key ingredient to this system is momentum which has been described as the premier anomaly for stocks. The other main anomaly is the value factor, but this book uses only momentum. There have been several books on using momentum to trade stocks and the general impression the public probably has is simply to buy the 5, 10 or 20 strongest stocks over a certain time frame. The author does use this approach but he adds several restrictions and modifications along with risk parity that serve to make using momentum more practical and more useful in actual trading. After all, one can probably find penny stocks that have moved up several hundred percent in a few weeks but attempting to actually trade these stocks will almost inevitably be a financial disaster for many reasons. Clenow's momentum system is just as clear as the systems he fully described in Following The Trend and similar to that book he has a chapter in which he goes year by year to give the reader a clear look in 'real-time' of what it was like to trade the system over a long period of time
Summing up, I would say his first book was a bit more thorough than this one but managed futures is a more difficult asset class to understand than stocks, so that's probably as it should be. I give both his books my highest recommendation and unlike some follow up books, this does not duplicate or reprise his first book. Buy them both!
- Reviewed in the United States on August 7, 2015Andreas' previous book Following the Trend is one of my favorite books on trend following as it not only breaks certain myths about the concept of trend following but also demonstrates it with data.
During the course of my journey of trend following and backtesting strategies on Stocks I pretty much came to the same conclusions that Andreas came to in this article provocatively titled Trend Following does not work on Stocks so it resonated deeply with me. An aha moment. Key point is that standard trend following strategies do not work on stocks. First change that has to be made is DO NOT SHORT STOCKS. (Unless you are Bill Ackman) and definitely not using STANDARD trend following strategies. Second is that stocks are a homogenous group and there is massive internal correlation. Owning stocks beyond a certain number is not diversification , it dumb-versification. For more on that read Warren Buffett portfolio by Robert Hagstrom.
And now Stocks on the Move. I will try and give as little as away so that you discover it for yourself when you read the book. Andreas talks about Mutual Funds and how most of them under perform the index itself. He also explains how the new and specific ETFs are not really well understood by people who trade them. He then uses this foundation to talk about why equities are such a difficult asset class to trade and more so on the short side. And most of the observations are spot on. And because of these issues, why Trend Following (TF), as a strategy which was specifically designed to trade a diversified basket of low correlated futures markets cannot be blindly applied to trading stocks on the long and short side.
Andreas then goes on to explain the difference between trend following and momentum and through the next chapters he very transparently explains his strategy. He clarifies that is not the only strategy that works, but this is one of them that works well. Also he encourages readers to focus on trading or investing based on concepts and not get too fixated on parameters.
He then very simply explains the building blocks and the rationale behind those building blocks in very simple terms. A purist Quant might cringe but a practitioner will be elated to read a momentum strategy in English language without much greek and latin notations thrown in.
Then like the previous book he takes us through a fascinating year by year review from 1999-2014 of how the strategy would have worked through those years. And there is a lot of learning here. Of course there is nothing like going through it yourself but hearing it from someone who has been there done that is the next best.
And no he is not going to give you the source code for the strategy simulation. And you know what, it doesn't matter. Because he has given you the core engine. Now go make your car.
Now just one spoiler. The strategy does employ a couple of trend filters which are important elements of the strategy so I would not call this a pure momentum strategy, but practitioners shouldn't care about this because in my view of what I have read about momentum and trend following strategies they are close cousins and so its all in the family.
The charts are hard to read but Andreas has put the images on his website here.
Other than that I enjoyed reading the book and learnt a few new things and the book is going to stay close to me for a while.
Top reviews from other countries
- Prof. DIYReviewed in Canada on December 3, 2022
5.0 out of 5 stars Exceptional
This is the most practical how to trend following book I have read. Full details on how to operational a trend following system for the investment universe of your choice. I coded up Clenow's method in both Matlab and Zipline (I purchase my data from Norgate Data). Clenow uses 1999 to 2014 to analyze his method. I have extended his method from 1991 to 2022. Methodology continues to provide returns commensurate with his test period. I love having a systematic method to trade that can be backtested. I have tested the various parameters values he suggests in this book, i.e., look back window, volatility window, etc., and they remain pretty much optimal. Be sure to read Carver's book on Systematic Trading so as not to over optimize!
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GiancarloReviewed in Italy on August 30, 2024
2.0 out of 5 stars qualità stampa pessima
restituito, il libro prometteva bene nel contenuto ma illeggibile. Da migliorare molto la stampa
- Martin WithoeckReviewed in Belgium on August 1, 2024
4.0 out of 5 stars Great start for momentum strategies
I've read many trading books, and this one is a great start for momentum strategies. The general conclusion is that you need to keep your trading system easy to execute and most essentially manage risk!
- Kindle CustomerReviewed in India on April 25, 2022
5.0 out of 5 stars Very useful book
Very nice for investment. Yes one can beat the index performance in a better scale and achieve financial success. So I highly recommend this book to read.
- javierReviewed in Mexico on November 4, 2019
5.0 out of 5 stars very good book
actually 4.5. i am a numbers driven guy and although the book presents some i would have loved to see all the details behind every single number. the strategy presented here is quite useful no complaints on that. you cannot go wrong buying this book