Book Review: Stocks On The Move by Andreas F. Clenow

I don’t read too many trading books anymore but Andreas kindly sent me a rough manuscript for his new book, “Stocks On The Move” several months ago. It has now be published and like his first book, “Following The Trend” this one is a worthy read for those interested in managing their own assets.

Unlike “Dual Momentum Investing” by Gary Antonacci (which tends toward ETFs and Bonds), “Stocks On The Move” outlines a fully disclosed Momentum strategy for outright equities. Momentum is somewhat different to trend following in that it measures candidates on a relative basis rather than an absolute basis, i.e. it compares the performance of one stock to another, or universe of others, to generate signals rather than the price action of a single stock.

Relative strength momentum is nothing new. It has been well-researched and appears in many academic papers. What Andreas does nicely however is explain it in simple terms and then outlines a full working strategy that can be followed.

Strategy aside there are two other parts of the book that I feel are extremely beneficial. The first is walking through each and every year of the backtest to discuss all aspects of what is required and how the strategy fared. He also did this with “Following The Trend” and in both cases the insights provide a great educational resource.

The second is Chapter 14 entitled ‘Strategy Analysis’. In this section he asks the question, “How important is the ….?” for each part of the strategy makeup. This demonstrates how robust this style of investing is and should allow the prudent researcher some guidelines on parameter settings.

Stocks On The Move is now available from Amazon and after programming and testing it for myself in both the Australian and US markets I strongly recommend it.

You may also like to take a look at the US & ASX Momentum strategys  based on this same principle.