Excess Returns Unleashed: Dynamic Momentum-Contrarian Strategy with Ichimoku

Previous studies of momentum strategies and contrarian strategies have focused on debating the advantages of each strategy separately without attempting integration. The aim of this study was to test the effects of combining these two strategies into a dynamic approach, using Ichimoku as a mediator. This quantitative research uses daily stock prices taken from the Indonesia Stock Exchange website to analyze the mechanism of the relationship between heuristics and investment performance. Our research demonstrates the superior performance of the Dynamic strategy in generating higher returns when compared to alternative strategies. One of the main reasons behind this success is how well Ichimoku can navigate this indirect influence. The proposed model demonstrates strong predictive abilities and sets itself apart from the strategies that influence its development. Investors of all backgrounds, including individuals, can easily integrate this innovative strategy. Therefore, the study makes a valuable contribution to improving investment strategies, making them more comprehensive and effective.