Code a Momentum Trading Strategy in Python (2025 Guide)

Learn how to build a cross-sectional momentum trading strategy using Python in this step-by-step tutorial. We’ll walk through selecting assets, calculating momentum rankings, and building a portfolio based on the top performers — all with clean and efficient code.

This strategy ranks stocks based on their past returns and invests in the top decile — a well-known quantitative method backed by academic research.

📌 What you’ll learn:

How cross-sectional momentum works
How to rank stocks using historical returns
How to build a long-only momentum portfolio in Python
Monthly rebalancing logic
Backtesting with pandas and yfinance
📈 Whether you're into quantitative finance, algorithmic trading, or just want to apply Python to real trading strategies, this video is for you.

🔗 Check out my website for more Python for Finance:
https://www.pythonforfinance.info

💻 Get the Notebook/Source Code:
Unlock all resources by becoming a Tier-3 Channel Member here:
   / @algovibes  

❗️Credits to this GitHub user/repo:
https://github.com/fja05680/sp500

Note: This video is for educational purposes only and does not constitute financial advice. Trading involves risks, and it's essential to conduct thorough research or consult with a financial advisor before engaging in any trading activities.

#QuantFinance
#AlgorithmicTrading
#StockMarketAnalysis
#PythonForFinance
#sp500