The markets continued the correction that started last week and the global headwinds caused quite a dramatic drop on the last day of the week. The day long exchange snag on Wednesday caused quite a disruption and led to fierce short covering post the market open that day . The Q3 GDP numbers that were released post market are below expectations and we may have some more correction going into the next week as well.
STAIRS our index trading product did very well in the CY so far and is riding a great wave of super trades so far. This week also it was able to capture the up and down move early and is already sitting on good gains for the trade.
The strategy has already accumulated near 7900 points on BankNifty and near 2250 points on the Nifty in CY 2021!!
Trend followers ruled this week ! On a 3X leverage, capital of 10L became 19L+ in BN and 15 Lacs in Nifty futures just in 2 months!. These numbers are as real as it gets includes transaction costs as well. If one wishes one can run a slower version on lower leverage also !
The Options4STAIRS models work off the 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 .
As can be seen from the table above just simple option buying yielded 63+% gain each on capital in NF and BN respectively in 2021 so far.
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.
More details on the options models are here. Options are a part of the STAIRS program
Our STAIRS Discovery webinar series has met with a resounding success with thousands attending it. We will soon be releasing its recording for every body to go through
To subscribe to STAIRS click here.
The Weekendinvesting Smallcases were a huge success this week.
These are all long term strategies that will create enormous wealth in each upswing and then maybe give some back in the downswing and repeating this process again and again achieving the compounding effect. With patience and grit to follow strategy over ups and downs over the last nearly five years it has been shown that much superior CAGR returns are possible than the benchmarks.
The ATH portfolio did not fall this week also and is now up 145%!! this FY and Allcap becomes the second strategy to cross the 3 digit mark at 112%!! Mi25 the smallcap wonder is also up 91%! All this gain despite the markets moving down this week !
All this is available at anybody’s fingertip with just 2 clicks a week at a nominal fees!
For Monday 1st Mar 2021, the proposed changes are:
Mi_LT_CNX200 : 0 ADD, 0 EXIT
Mi_MT_Allcap : 0 ADD, 0EXIT
Mi_ST_ATH : 0 ADD, 0 EXIT
Mi 25 : 2 ADD, 2 EXIT
NNF10 : 1 ADD and 1 EXIT
The selection of the smallcase can be based on
a. Sub Segment of the market : Mi25 for smallcap, Mi_All_cap for all round diversification OR LTCNX 200 for large caps only
b. Activity specific smallcase like Mi ST ATH which chases all time high stocks
c. Or more passive strategies like NNF10 and NG5050 which are monthly rebalanced ones best to replace index investing with or for asset allocation.
2 new smallcases on existing products like Mi30 and Mi50 have been added which suit portfolio size of 10L and more. Detailed blogs on both will be released next week. By end of the quarter we will add the new product Mi SWING
In the LIVE product strategies, there were good gains despite the market falls in most strategies
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.
For LIVE Products proposed changes for week ended 26.02.21
Mi25 : : 2 ADD, 2 EXIT
Mi30 : : 2 ADD, 2 EXIT
Mi40 : : 0 ADD, 0 EXIT
Mi50: : 1 ADD, 1 EXIT
Yours truly was also featured on a podcast by the famous Ankit Chawla
That is all from my end.
Have a safe week…!!