The markets remained very choppy again with the indices gaining slowly through the truncated week and giving all the gains up on the last day on expectation of poor IIP nos. The rising US yield has put the brakes on all risk assets. By the middle of the week there were some nice gains but they were given up and more by the end. However segments in the smallcap and midcaps continued to outperform and the damage was mainly restricted to large caps as foreigners sell.
STAIRS our index trading product got hit quite a bit in this choppiness and gave up more ground.
The strategy has accumulated near 4100 points on BankNifty and near 1275 points on the Nifty in CY 2021 down from the highs in Feb.
Trend followers using STAIRS are down in double digits from last week. ! On a 3X leverage, capital of 10L became 13.6L+ in BN and 12.26 Lacs in Nifty futures so far in CY21. These numbers are as real as it gets includes transaction costs as well. If one wishes one can run a slower version on lower leverage also !
The Options4STAIRS models work off the 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 .
As can be seen from the table above just simple option buying yielded 37% and 22% gains on capital in NF and BN respectively in 2021 so far. The drawdowns in BN have been sharp due to its non trending moves.
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.
More details on the options models are here. Options are a part of the STAIRS program
Our STAIRS Discovery webinar series has met with a resounding success with thousands attending it. We will soon be releasing its recording for every body to go through
To subscribe to STAIRS click here.
The Weekendinvesting Smallcases remained a huge success this week.
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 did not fall this week also and is now up 165% up !! this FY and Allcap becomes the second strategy to cross the 3 digit mark at 129%!! Mi25 the smallcap wonder is also up 105% and Mi50 at 102%!!
All this is available at anybody’s fingertip with just 2 clicks a week at a nominal fees!
For Monday 15st Mar 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 which suit portfolio size of 10L and more. Detailed blogs on both will be released next week. By end of the quarter we will add the new product Mi SWING
In the LIVE product strategies, there were good gains mostly despite the market choppiness.
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 12.03.21
Mi25 : : 0 ADD, 0 EXIT
Mi30 : : 0 ADD, 0 EXIT
Mi40 : : 1 ADD, 0 EXIT
Mi50: : 0 ADD, 0 EXIT
Due to the global outage of google finance quotes the updated results are delayed and will get updated later
As this leg of the market matures and the core data falls short of expectations, the fall in inflows can cause the markets to correct. Let us see what is in store for us next week. That is all from my end for now .
Have a safe week…!!