Add to Portfoli Nikkel 225 (AN225)-Osaka 15,063.77 +8.11(0.05%) 07:00 1040. '] COMPARE EVENTS. TECH CALHOCATORS. | CHART SETT0H RESET Mar 1997:-"H225 B003.00 356 25k 13k 1984 1983 2000 2010 200 The above the is the Japanese stock market index price. Suppose there is an index ETF product for this index. If you are a momentum trader, can you benefit from the price movements in both directions of this index over the time period above? How should you design your momentum strategy? No, momentum is about a cross-sectional strategy meaning that one needs to buy the prior winner stocks and sell the prior loser stocks. Here, with only one index product available, there is no way to implement the momentum strategy Momentum strategy will not work: if we gradually buy the index product starting from 1984, we may profit from the price increase over time for a while but eventually we will lose most of the money earned as the market reverse its trend and starts dedining after 1990. Buy the product when the index return over the past two years is positive: Sell or short the product when the index return over the past two years is negative. and Submit to save and submit. Click Save All Ansuers to save all answers