Absolute momentum

Absolute momentum, or time-series momentum, compares an asset's own return over a look-back period with zero or with cash: the asset is held only while its recent return is positive. Relative momentum instead ranks assets against each other; using both is often called dual momentum.

Momentum-based tactical asset allocation applies such a rule to move between asset classes, usually checked once a month. It tends to reduce exposure during long declines, but it reacts late at turning points, and a sharp reversal can arrive before the signal changes.

AlgoBee Research publishes a momentum rotation across Swedish equities, gold and bitcoin, with its rules and limits: Momentum rotation research