I have long wanted to invest in direct stocks without the fear of the downside. For me, the EXIT has been the most important part of any trade. The ENTRY can be perfectly timed only rarely, but mostly when one talks about momentum based investing one can have the option to climb the momentum train at any station but have to mandatorily EXIT before it derails!!
Being a trader/investor for most part of the last two decades, I came to realize the advantages of mechanical system driven trading vs discretionary trading early. I have done rigorous back testing of various trading and investing systems and all my studies and learning have culminated into a investing system called Mi50 for whatever it is worth. On the down side, I am pretty confident it wont lose me money over say a three year period. On the flip side, I expect to get a CAGR of 15% +, which may be a pittance for the star investors out there, however, is more than sufficient for a passive, diversified,low churn investing system this is….I intend to manage this money every weekend and use the rest of the time to travel 😉
mi50 – the strategy, invests in NSE listed stocks which are filtered based on momentum and volume related criterion and Entry and Exits are purely price driven. The exposure to each scrip is limited to 2% and hence can hold a maximum of 50 stocks at any time. I expect only 40-50% trades to result in profits, however the profits on those profitable trades should outweigh the loss on the losing trades by a wide margin.
Lets hope the journey is fruitful.
What is the strategy behind entry and exits? Is there any marketcap criteria?
Hello Vinith. The strategy remains proprietary for now. The basic tenets are momentum indicators, position sizing and liquidity filtering.
It would make sense if you at least explain the exit strategy. I think that is key to success whereas entry can be even made by a flip of coin 🙂