The rally continued in the broader market this week but some profit booking emanated towards the end of the week . The expiry day and the last day of the week are almost regularly very volatile now reacting to small moves on the global futures movements.
STAIRS our index trading product did better this week. The futures and the options models were in net gain though the futures models have not been able to break the profit range last two quarters.
There are two models to trade using futures. For Model 1, which trades at 3X leverage (you can easily trade at a lower leverage too if you like) , capital of 10L at start of the year is now at 15.9L and for Model 2, where leverage is left to the user, NF has gained 1840 points and BN 6064 points per lot basis. Model 2 does better in choppy markets where part profit booking helps.
The Options4STAIRS models gained modest ground this week
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 .
The spread models did well in Bank Nifty while Buy model did better in Nifty
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 mildly 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.
Our flagship Mi ATH which chases all time high stocks crossed the coveted 3 digit mark last week remains the best attraction.
The challenge remains how to convince users to take a long term view. 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.
For Monday 14th Dec 2020, the proposed changes are:
Mi_LT_CNX200 : 0 ADD, 0 EXIT
Mi_MT_Allcap : 0 ADD,0 EXIT
Mi_ST_ATH : 1 ADD,1 EXIT
Mi 25 : 0 ADD, 0 EXIT
Liquid bees is not being included as an add or exit.
(IF YOUR PF IS LESS THAN 2 LACS YOU CAN AVOID BUYING LIQUIDBEES BY CUSTOMIZING YOUR ORDER IN CASE MIN INVESTMENT IS BEYOND YOUR EXISTING CAPITAL)
This last week we added a monthly rebalanced FREE smallcase NG5050. This smallcase is a equal weight portfolio of the liquid Nifty and Gold ETFs by Nippon AMC. The smallcase is provided totally free and its performance over a longer period has been nothing short of spectacular. If you are not happy with your current funds, this is certainly something you should consider.
Last month we started a new Smallcase Mi _NNF10. This 10 stock smallcase is based on finding momentum within the top 51st to 100th NSE stock by market capitalization. These are all liquid and large cap stocks. The strategy will have a monthly rebalance and will allocate 10% capital to each pick . At the end of each month it will rebalance into the 10 stocks for the next month. As of now the FY2021 performance is +38.75%
The strategy has been tested thoroughly over last decade of data and has beaten the benchmark in all respects over a medium and long term.
The smallcase has been launched at a festive introductory prices of quarterly 1999 and annual plan at 7499 for first few hundred users in next few weeks.
I believe this is a great passive strategy for folks who are wanting to diversify into index investing. This can not only beat index returns but provide a much needed low cost experience of managing your own monies yourself.
We had a great response in the first few week with a few hundred users joining in taking advantage of the introductory prices. A detailed report on the first month performance was sent recently
In the LIVE product strategies, there was overall smart gains as smallcap and midcap indices went full steam ahead. Our Mi50 the widest diversified portfolio doing the best among all and achieving nearly 65% returns for the FY is the biggest surprise of all portfolios.
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.
That is all this week. STAY SAFE and stay in peace ! Do share this newsletter with your friends who you think can benefit from the momentum way ! Send me your suggestion what you do or don’t like about our strategies, updates or anything else. We are always keen on listening to you!