The Good Bad and Ugly Weekly Update 04.12.2020

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The rally continued in the broader market this week. The NIFTY was uni-directionally upwards but BankNifty remains totally non trending again for the entire week and in the last few hours shot up dramatically after a major see saw day on Friday.


STAIRS our trading product is still at the receiving end mainly due to Bank Nifty. It lost a few percentage points this week. The futures models have not been able to break the profit range last two quarters.

There are two models to trade using futures. For Model 1, which trades at 3X leverage (you can easily trade at a lower leverage too if you like) , capital of 10L at start of the year is now at 15.6L and for Model 2, where leverage is left to the user, NF has gained 1830 points and BN 5680 points per lot basis.


The Options4STAIRS Nifty gained ground this week while Bank Nifty models of STAIRS lost again this week. We await clearer trends to regain our Mojo here.

The Options4STAIRS works off STAIRS signal so that you only spend a few mins a day at designated time to look into the markets. No staring at the screen all day!! Our options strategies have broken the myth that simple strategies cannot yield results .

The most money got lost this week in the spreads in Bank Nifty spread as it whiplashed around. Nifty models gained modest ground.

The key to all trading systems is to have a tight control over the position size and to reduce the same as we go into a drawdown. Many accounts which are not well funded will not be able to reduce position size and they should wait out or add funds. If you are unable to deal with the volatility which can happen to anybody, it is best to reduce leverage, reduce position, go from Model 1 to Model 2 OR move from futures to options.

Both these models (options buy and options spreads) 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. For volatile weeks like these options models are easier to handle and trade.

More details on the options models are here
To subscribe to STAIRS click here.


The Weekendinvesting Smallcases did very well and were all up. There is a decisive shift happening in the retail mutual fund space. Investors are increasingly taking charge of their investments and getting better value for their money spent. The bang for the buck is certainly MUCH BETTER and the peace of mind having CONTROL in your own hand is incomparable.

Our flagship Mi ATH which chases all time high stocks crossed the coveted 3 digit mark this week.

For Monday 7th Dec 2020, the proposed changes are:

Mi_LT_CNX200   : 0 ADD, 0 EXIT
Mi_MT_Allcap     : 1 ADD, 1 partial EXIT
Mi_ST_ATH          : 1 ADD, 1 partial EXIT, 1 partial ADD
Mi 25                    : 0 ADD, 0 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)



Last month we started a new Smallcase Mi _NNF10. This 10 stock smallcase is based on finding momentum within the top 51st to 100th NSE stock by market capitalization. These are all liquid and large cap stocks. The strategy will have a monthly rebalance and will allocate 10% capital to each pick . At the end of each month it will rebalance into the 10 stocks for the next month.

The strategy has been tested thoroughly over last decade of data and has beaten the benchmark in all respects over a medium and long term.

 Mi_NNF10NiftyNext50
CAGR16.86%10.44%
MAX DD23.90%32.40%

The smallcase has been launched at a festive introductory prices of quarterly 1999 and annual plan at 7499 for first few hundred users in next few weeks.

I believe this is a great passive strategy for folks who are wanting to diversify into index investing. This can not only beat index returns but provide a much needed low cost experience of managing your own monies yourself.

We had a great response in the first few week with a few hundred users joining in taking advantage of the introductory prices. A detailed report on the first month performance was sent recently


In the LIVE product strategies,  there was overall smart gains as smallcap and midcap indices went full steam ahead. Our Mi50 the widest diversified portfolio doing the best among all and achieving nearly 62% returns for the FY is the biggest surprise of all portfolios.

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 again all long portfolios were very Good, Options was bad and futures on STAIRS was UGLY !!.


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 ! Send me your suggestion what you do or don’t like about our strategies, updates or anything else. We are always keen on listening to you!

Some of the remarkable testimonials received this week for my services

I thank you all for all the affection you shower on me

In a conversation with a very senior trader this week I was told that these testimonials and real winning stories of the retail users is the biggest asset that I am accumulating and that this is my real wealth earned and I think he was so right. The win-win situation this franchise has created is a blessing indeed for all stakeholders. Please do help spread the word if you like the products.

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2 thoughts on “The Good Bad and Ugly Weekly Update 04.12.2020

  1. Sir, during the smallcase rebalancing we can buy only 80% of our selling value. For rest 20% of the free capital we have to place the order next day manually. Which is little bit cumbersome and against the idea of 1 click rebalancing in smallcases. Is there any solution to this ?

    Like

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