Mi25 FAQ

 

FAQ – Frequently Asked Questions

Where should I start?
On the blog pls go to the payments page and make the payment.
Pls send a email to alok@weekendinvesting.com with a copy or reference number of your payment.

I have paid the subscription. How should I start ?
See Operating Procedure below

Operating Procedure/ FAQ

Initial Steps:
At end of your designated week, pls see the %allocation for each stock on the Portfolio Master Page (PMP) on the shared google sheet
Allocate your intended capital accordingly and start your portfolio. Maintain a google sheet like this for your own portfolio

Routine Steps:
On your deisgnated day 3.15 PM, Exits and Additions will be sent on Email to you
Sell the holding qty of exits and add new stocks at 4% each value of existing portfolio value.
All entries and exits should be made gradually and not market orders. Try to purchase or sell within 2% of the guided buy or sell price
New allocations are made in Mi25 as 4% of portfolio value. So if your original corpus of say 10 lacs has grown to 14 lacs , then new additions will be done at 4% of 14 lacs.
If cash is excess after buys, buy liquid bees for the rest of cash till the next allocation
If cash is short, by a small amount, go ahead and still buy the allocation
Refer to PMP if you face any discrepancy in allocation
If you may want to reduce capital or take off profits mid year you can always reduce your exposure by proportionately selling all shares in the proportion of money you want to withdraw

More FAQs

Does fundamental analysis have any role in stock selection in Mi25?
No, Mi25 stock selection is purely based on price movements. Emotions, fundamentals, predictions etc have no role to play.

Can I use this service if I don’t want to run a portfolio?
Yes, you can use the new signals as identifiers of momentum in the market and you may use that knowledge to run your own strategies. Some folks are also using this service as a BTST( Buy today sell tomorrow indicator). According to me if you are an investor, then just stick to the portfolio but if you are a trader, there are other possibilities of using the signals.

What happens if a recommended stock has hit Upper or Lower Circuit and I am unable to enter or exit?
You will need to keep a close track and enter/exit as and when earliest possible. We are not here in the short term timing game so a few percent here or there will not make your 25 stock portfolio deviate much from the model.

What is the worst loss I may suffer?
Though it cannot be guaranteed but based on the backtests performed you should not suffer a drop of more than 30-40% of your portfolio even if markets repeat a dip like 2008 again in the future. The investment gurus like WarrenBuffet and Charlie Munger claim that all investors should be ready to get hit by a 50% drawdown a few times in their lives but the protection design built into the strategy should protect you reduce that loss.

How will following this service help me in investing?
Many a times, you have the skill and confidence of winning you but you just need somebody to nudge you to stay the course. This is the main intent of this Service.

How is this system going to protect me in turbulent times?
Since we are trend followers, we don’t wait endlessly to exit from our positions. Historically, fundamental investors who are working without an exit plan are caught with lemons in their hands. There have been plenty of such stories in the Indian and Global markets. My own staunch belief is that “Exit plan” is the most important component of any investing system.

What support is available to me?
I am always available at alok@weekendinvesting.com or twitter @WeekendInvstng to answer queries. I intend to have your query resolved within 24 business hours.

Can there be periods of long drawdowns ?
Yes, this is not a “get rich quick” strategy if ever there is one. You can be stuck in a long consolidation period like 2010-2013 or we may hit a major crack like 2008 as soon as tomorrow

What is the ideal time for recovery if there is a deep drawdown ?
Rolling 3 years returns of the past suggest that it can take upto 3 years to come out of any deep hole that we go into

Should I deploy my entire capital to this strategy at one go ?
No, In my opinion one should keep half of the allocatable money aside and wait for a significant drawdown (15-20%) to add to existing position

Should I start investing now or wait for the drawdown?
There is no clear answer for this. 50% amount can be started now in my opinion or entire amount may be used if your assessment is such

Can i share this login with others?
No, please do not share or disclose the details provided herein.

Does the model portfolio consider transactional costs?
Yes, entry and exit costs are built into the system. STT and other taxes are all taken care of

What brokerage should I use?
We recommend using Zerodha.com for this purpose. There is NIL brokerage charge on delivery based activity at Zerodha and they have won several awards in recent times for customer service and innovation.

Can my results be very different from the model?
Ideally that should not be the case but minor differences due to execution or slippages may result.

Can i make any changes in the sheet?
No, please dont attempt to disturb the sheet in any way. You have viewing rights only. Pls use F11 to enhance your screen view

The model assumes which price 3.15 or 3.30 ?
Model will take the closing price which is the weighted average of last half hour. So purchase and sale can be done gradually over the 15 mins

Will stock that are on Circuit be recommended?
No, at the time of recommendation if a stock is on circuit, it will not be recommended

How to deal with a loss year
Loss making years and some deep ones are par for the course. Take them in your stride. Do not panic. Add more capital on deep drawdowns