The Good, Bad and Ugly Report Jan 8th 2021

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The liquidity keeps flowing in and the markets keep scaling new highs… Another week another high.. It is almost like nothing matters… No global event , no news is stopping this. Both the Nifty and Bank Nifty went virtually straight up through the week after a initial hiccupp.

STAIRS our index trading product did very well this week. There was no new trade and the current trade has gathered nearly 800 points on Nifty and 2300 points on Bank Nifty.

The power to sit during a trend comes only when you practice a systematic way of trade. There is no fear and complete peace in the mind.

There are two models to trade using futures.

Model 1 which trades Futures on Leverage clocked 6.41% ( owing to running lower lev on BN) while Model 2 that runs on part profit book basis clocked 7.26% on capital

The following are results at the end of CY2020. A detailed report will follow soon. Model 1 CY2020 resulted in 107.7% return on Nifty and 45.4% return on BN.
Model 2 resulted in 7416 points on BN and 2382 points on Nifty per lot

The Options4STAIRS models which are a part of the STAIRS product also gained very good ground this week

And for the year ended CY2020 the results were outstanding.

Conservative option buying yielding 161.5 and 139% returns !! Have you heard this before ??

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 .
Below are the four models we are running along with the monthly returns on the conservative model basis.

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 gained amazing ground this week. I am very happy that smallcase is getting accepted rapidly and 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.

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 is now up 122%!! this FY and Mi AllCap at 95% !!
All this is available at anybody’s fingertip with just 2 clicks a week!

Unbelievable to me as well !!!

For Monday 11th Jan 2021, the proposed changes are:

Mi_LT_CNX200 : 0 ADD, 0 EXIT
Mi_MT_Allcap : 0 ADD,0 EXIT
Mi_ST_ATH :0 ADD,0 EXIT
Mi 25 : 0 ADD, 0 EXIT

For LIVE Products proposed changes for week ended 1.1.21
Mi25 : : 0 ADD,0 EXIT
Mi30 : : 0 ADD,0 EXIT
Mi40 : : 0 ADD,0 EXIT
Mi50: : 0ADD, 0 EXIT
Liquid bees is not being included as an add or exit.

The selection of the smallcase can be based on
a. Sub Segment of the market : Mi25 for smallcaps, MiAllcap for all round diversification OR LTCNX 200 for large caps only
b. Activity specific smallcase like Mi LT 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.

More smallcases on existing products like Mi30 and Mi50 will be added soon along with new smallcases like Mi SWING

In the LIVE product strategies, there were great gains again and the strategies held ground well.

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.

Mi50 has the distinction of carrying 10 multi-baggers in its fold now !!