mi50 draw-down almost completely recovered… No changes1 min read

No changes this week as well. As I tweeted earlier, non rotational strategies like Mi50 will harbor average performers or mild laggards for much longer. So is the system design. The potential buys in the last few weeks have rocketed ahead but there hasn’t been room to accommodate them in. Oh well, you cant have it all :). Β Β It does look like i am going to build a rotational strategy soon to complement mi50.

Mi50 closed at +48.78% for the FY. image-27

The drawdown is nearly complete at 0.82% now. The deepest we reached was almost 15%.

 

image-28

If you may recall in a weekend report of Jan 6th I wrote ” I am hoping for a zero DD (at 50% net gain) by budget time so that we can have the promised beer party πŸ™‚” Β . We are now very close πŸ™‚

The budget is done and we have escaped all fears that were revolving before it. The path is reasonably clear ahead and I expect an All Time High on the market pretty soon and much higher levels in FY 1718.

Have a great weekend.

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    srinivas
    srinivas
    5 years ago

    Hello Alok,

    I had come across your blog recently and i must say that i am impressed. i am also very big on momentum investing and trend following. I have tried several styles like value investing, mean regression etc.. before settling on this. Looking at your blog, i may have to start making my holdings also public.

    Quick question for you. Does your system design allows picking buy signals from the same industry/sector (or) is it mandatory to have positions from multiple sectors ?

    – Srinivas

    JIGS
    JIGS
    5 years ago

    Zero DD prediction is turning out to be true yes but in real life DD is ir-relevant for medium term investors in my opinion. See draw down in Micro Fin Companies in last few months and subsequent rebound.
    Want to know if you hold or have buy signal in any PSU Bank. Biggest wealth creator over next 12-15 months will come from them I think.

    JIGS
    JIGS
    5 years ago

    My models suggest below 8000 is out of question now and may not come but we may see 8200-8250 by June 2017 and new Nifty all time high only in 2018.
    Except PSU Banks and 4G stocks (RIL, Idea, Bharti etc.) most sectors showing tiredness.