# Momentum Factor Strategy AI Agent Connect

> A deterministic cross-sectional momentum engine for generating long/short signals.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_AAkYO9cLMdARapK2YRMHrTvUFpRLN5tEynSjblHi/ai-agent-connect
- **Tags:** momentum, quantitative, finance, trading, alpha

## Description

This MCP server provides a deterministic cross-sectional momentum engine. It identifies high-momentum leaders and low-momentum laggards to generate actionable long/short signals. The engine uses `calculate_momentum_signals` to rank assets based on historical returns while excluding the most recent month to avoid short-term reversal effects. It also includes `analyze_momentum_risk` to detect potential momentum crashes during market regime shifts and `evaluate_performance` to compare strategy returns against benchmarks.

## Tools

### analyze_momentum_risk
Evaluates the potential for a momentum crash based on recent market volatility

### calculate_momentum_signals
Generates the core long/short asset rankings and portfolio composition based on momentum returns

### evaluate_performance
Compares the momentum strategy's performance against a provided benchmark

## Prompt Examples

**Prompt:** 
```
Calculate the momentum signals for these asset prices and market caps.
```

**Response:** 
```
The long list includes AAPL and MSFT with equal weights, while the short list includes XYZ and ABC. The momentum spread is 0.05.
```

**Prompt:** 
```
Check if there is a momentum crash risk given the recent market returns.
```

**Response:** 
```
No crash risk detected; the market return is within the safe threshold.
```

**Prompt:** 
```
Compare the strategy performance against the benchmark.
```

**Response:** 
```
The strategy achieved a cumulative return of 12% with an alpha of 2.5% over the benchmark.
```

## Frequently Asked Questions

**How does the strategy avoid short-term reversal?**
The engine excludes the most recent 21 trading days from the momentum calculation to prevent reacting to short-term mean reversion.

**What happens if a momentum crash is detected?**
When `analyze_momentum_risk` flags a crash risk due to significant market declines, the engine reduces the exposure multiplier to mitigate downside.

**Does the strategy filter for liquidity?**
Yes, the engine only considers assets with a market capitalization exceeding the $500M liquidity threshold.