Momentum (Trend-Following)

Momentum - A strategy that assumes strong recent price moves will continue. A momentum bot buys currencies showing a strong uptrend and sells (or shorts) those in a downtrend. According to QuantInsti, momentum trading “involves buying or selling assets based on recent price trends,” operating on “buy-high, sell-higher” logic. In practice, a momentum cBot might use moving-average breakouts or trend strength indicators to enter on rising pairs and exit when momentum wanes. Unlike mean-reversion, momentum systems ride trends, profiting as long as the trend persists.