The markets were on a trend less journey this week , swaying on both sides with FIIs remaining on the sell side while global markets remained firm. The markets are totally confused on its next move yet. The markets have remained in a range for almost 8 weeks now. Such long periods of indecisiveness result in very strong breakouts to either side. Covid situation in the country also has not helped the situation despite positive murmurs from IMF on India’s growth trajectory for FY22
STAIRS our index trading product has taken a beating in the last few months getting whiplashed by these sideways and indecisive moves. The drawn down is now at 18% to 39% in various models. The need of the hour is to stick to position sizing and not try to guess the next trade. If the capital falls below a threshold of min position size then one should sit out or add capital. Trend following is often subject to these severe drawdowns and we have to accept them as part of the process.
The Options4STAIRS models while still in green have come off significantly from the top and there is no place to hide on the indices right now.
The option sell spread model which is like an income generating model, has also done wonderfully well at 23-25% so far in CY2021
More details on the options models are here. Options are a part of the STAIRS program
We have released detailed videos on STAIRS on my you tube channel for all to go through
The Weekendinvesting Smallcases were all flying this week despite the markets remaining sideways this week and all strategies gained ground. When you have strong stocks with relative strength in the portfolio, you will often get such out performance.
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.
FY21 has been phenomenal and I will let the numbers speak for themselves. A consolidated FY21 report is here
And FY22 starts with a bang…
For Monday 12th Apr 2021, the proposed changes are:
Mi_LT_CNX200 : 0 ADD, 0 EXIT
Mi_MT_Allcap : 0 ADD, 0 EXIT
Mi30 : 0 ADD, 0 EXIT
Mi50 : 0 ADD, 0 EXIT
Mi_ST_ATH : 0 ADD, 0 EXIT
Mi 25 : 0 ADD, 0 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 in the last few weeks which suit portfolio size of 10L and more.
In the LIVE product strategies, there were again good gains and all portfolios gained ground
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 09.04.21
Mi25 : 0 ADD, 0 EXIT
Mi30 : 0 ADD, 0 EXIT
Mi40 : 0 ADD, 0 EXIT
Mi50: 0 ADD, 0 EXIT
That is all from my end for now . Do let me know about your experience with our products or services and where you feel we can improve more. Always willing to listen and implement.
Have a safe week…!!