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Record W2604890964 · doi:10.5539/ijef.v9n5p1

The Momentum & Trend-Reversal as Temporal Market Anomalies

2017· article· en· W2604890964 on OpenAlexvenueno aff
Vasiliki Basdekidou

Bibliographic record

VenueInternational Journal of Economics and Finance · 2017
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicMarket Dynamics and Volatility
Canadian institutionsnot available
Fundersnot available
KeywordsTrading strategyMomentum (technical analysis)SpeculationPosition (finance)EconomicsAnomaly (physics)Efficient-market hypothesisProfit (economics)EconometricsFinancial economicsCapital asset pricing modelTrend followingFinanceStock marketMicroeconomicsPhysicsGeology

Abstract

fetched live from OpenAlex

The main goal of this paper is to introduce and discuss the temporal dimension and the subsequent (time-series) functionalities of two well-known technical market anomalies - the momentum anomaly and the trend-reversal anomaly. Our approach not only challenging the efficient-market hypothesis but also has a temporal dimension because it uses the “psychological time” at the beginning of a move, as a parameter in overnight post-market asset position trading strategies and daytime asset position strategies as well. Momentum and reversal have been documented extensively in financial literature and they are viewed, in the current paper, as temporal momentum and temporal trend-reversal anomalies because they are hard to fully explain within the standard static asset-pricing paradigm. A rational dynamic and temporal representative agent could explain and document better these anomalies and this is the case of this article. The presented research shows that momentum profit accumulates entirely overnight, while trend-reversal profit occurs entirely intraday. These findings reject classical theories of intraday and overnight returns. Hence, (i) a well designed overnight-position return strategy based on temporal momentum anomaly; and (ii) a well designed intraday-position return strategy based on temporal trend-reversal anomaly, could gain benefit at the expense of long-term investors and hedgers. After back-testing our research in available 16-year data, we found that overnight-position speculators profit from the proposed temporal momentum trading strategy approach at the expense of hedgers, and daytime swing traders profit from the proposed temporal trend-reversal trading strategy approach at the expense of long-term investors.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.746
Threshold uncertainty score0.593

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0010.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0010.000
Open science0.0010.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.024
GPT teacher head0.249
Teacher spread0.225 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations6
Published2017
Admission routes1
Has abstractyes

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