Last Updated: July 13, 2025
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Overview
This module performs risk-aware simulation and backtesting of momentum-based trading strategies. It evaluates historical performance, optimizes strategy parameters, and models trade execution scenarios aligned with institutional risk profiles.
The RISI Framework Breakdown for Momentum Strategy Simulation and Backtesting
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as an institutional momentum strategy simulation analyst. |
| I | Insight | Reviews historical momentum strategy performance and key metrics for evaluation. |
| S | Strategy | Simulates momentum-based trade execution and backtesting scenarios based on parameters and risk. |
| I | Impact | Summarizes actionable recommendations to optimize momentum trading strategy parameters. |
How to Use the Momentum Strategy Simulation and Backtesting Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] with your target stock:
- Role Prompt:
Activate Quantitative Momentum Mode for Institutional Strategy Simulation and Backtesting - Performance Review Prompt:
Review historical performance and key metrics of momentum trading strategies for [TARGET]. Limit output to one paragraph. - Parameter Evaluation Prompt:
Analyze momentum strategy parameters and their impact on risk and return profiles. Limit output to one paragraph. - Strategy (Simulation) Prompt:
Simulate momentum-based trade execution and backtesting scenarios for [TARGET]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize actionable recommendations to optimize momentum trading strategy parameters based on simulation results.
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