The Good Bad and Ugly weekly report 15th Jan 2021

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A different week from many of the past where the markets slowed down and there was some profit booking towards the latter part of the week as well. The stimulus debate is on in the US and locally some profit booking may have started to take place ahead of the Union budget on Feb 1.

STAIRS our index trading product did very well this week for most of the week. The last trade that was initiated on Dec 23rd closed today.

The new year has started well and all models are in green.

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 .

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
To subscribe to STAIRS click here.

The Weekendinvesting Smallcases were a mixed bag with minor gains in some and minor losses in others.

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 123%!! this FY !
All this is available at anybody’s fingertip with just 2 clicks a week!

Unbelievable to me as well !!!

For Monday 18th 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 15.1.21
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 smallcap, Mi_All_cap 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 by end of the quarter along with new smallcases like Mi SWING

In the LIVE product strategies, there were muted gains in some and quite an average week.

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 !!