Momentum strategy – A strategy that buys strong assets and sells weak ones, chasing price momentum. It’s often contrasted with mean-reversion. A momentum robot might buy when price breaks out higher (buying high to go higher) and short when price is falling. As Axi notes, momentum traders “are chasing the momentum – i.e. ‘buy high and sell higher’”. In code, momentum entry logic could trigger on a breakout above recent highs or on increasing oscillator readings. For example, in MQL5 one could use if(iMomentum(_Symbol,_Period,14,PRICE_CLOSE,1) > threshold) Trade.Buy();. A Backtrader strategy might generate a signal when RSI goes above 70 or price surpasses a moving-average envelope. Momentum strategies are relevant in Forex robots because they thrive in trending markets. They differ from pure trend-following by entering on bursts of strength rather than crossovers: they assume existing rallies will continue. This entry completes the classification pair “momentum vs mean-reverting” by summarizing momentum as directional and trend-chasing (with reference) versus the mean-reversion approach described earlier.

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