Accelerating Dual Momentum (ADM) is a type of investment strategy that combines both momentum and trend-following methods to generate returns in financial markets. The concept of ADM is to invest in the asset that has shown the highest returns over varying time frames in the last few months, and then switch to a risk-off asset (such as bonds or cash) when none of the assets present positive momentum or a long-term trend-following indicator signals a bear market. This is attempting to reduce the risk of significant losses during bear markets.
To implement an ADM strategy, we first determine the assets to include in the portfolio, such as stocks, bonds, or commodities. Then establish a method for measuring the momentum of each asset, such as using the rates of returns over the specified time periods. See a long term example.
In conclusion, Accelerating Dual Momentum is an extension of dual momentum strategies using multiple time frames.