The risk in quant investing is not the model — it is the investor. Most people abandon a systematic approach precisely when it is about to work. A momentum model underperforms for a quarter, anxiety sets in, the investor exits — and misses the recovery the model was positioned for.
Momentum as a factor needs time. Stocks selected because the market is rewarding them need holding time to deliver the full return. Churning the portfolio based on short-term noise destroys the edge. The model needs to run without interference.
Use Quant Compounding. Quarterly rebalancing gives momentum selections time to compound without interruption. Positions are not replaced based on short-term volatility. The model selects, the portfolio holds, the market prices it in fully over time. This is how quant momentum investing actually delivers — patience structurally built into every rebalancing cycle.