# Momentum Reversal Strategy AI Agent Connect

> A deterministic contrarian strategy to identify beaten-down assets and overextended momentum.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_fLa2DGJPlG5Qnj9j3nzHnSob29mHBkTlGWiesnYj/ai-agent-connect
- **Tags:** momentum, contrarian, quantitative, trading-strategy, finance

## Description

This MCP server provides specialized tools for executing a deterministic momentum reversal strategy. It identifies deep value opportunities by detecting assets with significant negative momentum that pass strict quality filters, and identifies overextended assets for selling. Use `analyze_momentum_signals` to generate buy, sell, or hold signals based on price history and fundamental metrics. You can also use `calculate_reversal_probability` to assess historical success rates and `get_position_allocation` to distribute capital equally across active signals.

## Tools

### analyze_momentum_signals
Calculates momentum returns and generates specific buy, sell, or hold signals

### get_position_allocation
Calculates the capital distribution for a set of active signals

### calculate_reversal_probability
Determines the historical success rate of the reversal strategy

## Prompt Examples

**Prompt:** 
```
Analyze these prices for momentum signals: [100, 95, 90, 85, 80, 75] with debt-to-equity of 0.5, positive earnings, and no bankruptcy risk.
```

**Response:** 
```
The analysis generated a BUY signal at a price of 75.00 with a stop-loss at 60.00 and a take-profit at 112.50.
```

**Prompt:** 
```
What is the historical probability of recovery for a -20% momentum drop over a 12-month window?
```

**Response:** 
```
The historical probability of a successful reversal is 35% based on the provided dataset.
```

**Prompt:** 
```
How should I allocate $10,000 across these three active signals?
```

**Response:** 
```
Each of the three signals will receive an allocation of $3,333.33.
```

## Frequently Asked Questions

**How do I generate trading signals?**
You can use the `analyze_momentum_signals` tool by providing the price history and quality metrics to receive specific buy, sell, or hold signals.

**What is the quality filter used in this strategy?**
The quality filter ensures assets are healthy by checking that debt-to-equity is below 1, earnings are positive, and there is no bankruptcy risk.

**How is capital allocated among signals?**
The strategy uses equal weight allocation. You can use `get_position_allocation` to calculate the exact amount for each active signal.