The previous week was a total mayhem on nifty as the index went up in the first half of the week then tanked sharply in a few minutes only to recover partially there after. Notable point remained that the entire weeks move remained in the range of the super down candle day of 15 Oct 2020 thus signifying continued weakness for the Nifty. Bank Nifty was however much better in relative strength. It kept trending upwards with a bit swing move in the mid week. We remain glued to the global markets for cues the next one being the stimulus before or after the upcoming US elections. More such volatility is expected now.
Unless you were playing on very short time frames it was difficult to do make profits in a trend following fashion as there were no real trends.
STAIRS our trading product was hit some more on these non trending move and lost about 5% odd percent on capital through still up from few weeks back. It is never a good feel to give back gains but that is part and parcel of a trend following system.
The Options4STAIRS module of STAIRS did not fair too badly this week
For CY 2020 to date the Options4STAIRS results
Both these models above track STAIRS signal and have defined risk per trade. The Options4STAIRS has now made the STAIRS product accessible to lower capital , is risk defined and has better performance dynamics. More details are here
The Weekendinvesting Smallcases were also mildly hit as some of the larger holdings like AARTIDRUGS kept bleeding during the week. Overall some gains have been given up. Mi25 gained however on back of smallcap performance
For Monday 26 OCT 2020, the proposed changes are:
Mi_LT_CNX200 : NO CHANGE
Mi_MT_Allcap : 1 ADD, 3 EXIT
Mi_ST_ATH : 4 ADD, 3 EXIT
Mi 25 :2 ADD, 2 EXIT
Liquid bees is not being included as an add or exit.
(IF YOUR PF IS LESS THAN 2 LACS YOU CAN AVOID BUYING LIQUIDBEES BY CUSTOMIZING YOUR ORDER IN CASE MIN INVESTMENT IS BEYOND YOUR EXISTING CAPITAL})
In the LIVE product strategies, there is some cash raise now and all strategies are essentially holding ground so far. The LIVE products area more suitable for large portfolios who are not chasing high returns and want more mature and diversified lower risk portfolios. Also the user here churns his portfolio at Fri 3 PM along with the model and there is no slip between the model the actual experience.
This week Smallcase and LIVE product were the GOOD, and Options4STAIRS was kind of BAD and STAIRS remined UGLY.
A very nice podcast on global macro and where we are heading was on Grant Williams podcast feature Felix Zuluf. I recommend investing an hour into this.
The rally from March end to now is a good 6 months and 2 weeks strong. There will come a turning point sooner or later for a short or a long duration. All our strategies are ready for it with capital protection built into our models. We may get hit anytime but we will live to fight another day.
That is all this week. STAY SAFE and stay in peace ! Do share this newsletter with your friends who you think can benefit from the momentum way !