The Good Bad and Ugly Weekly Report 19 Mar 2021

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The markets remained in a downward drift with global yield looking up all through the week. The move on the last day became very volatile with a sharp gap down and a bear covering rally thereon. The markets may not be out of the woods yet but who can say. FII selling seems to have abated in the last few sessions and that may be a silver lining going ahead.

STAIRS our index trading product remained short the entire week and had gained dramatically by Friday morning before giving back some gains. Nevertheless it improved upon the last week and is sitting with pretty gains for the calendar year so far. This week Bank Nifty gained about 1400 points and Nifty about 175 pts.

The strategy has accumulated near 5500 points on BankNifty and near 1547 points on the Nifty in CY 2021 down from the highs in Feb.

Trend followers using STAIRS are up in double digits from last week. ! On a 3X leverage, capital of 10L became 15.4L+ in BN and 12.8 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 49% and 31% gains on capital in NF and BN respectively in 2021 so far.

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
We have released detailed videos on STAIRS on my you tube channel for all to go through

To subscribe to STAIRS click here.

The Weekendinvesting Smallcases were hardly impacted despite the markets remaining weak 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 hardly fell this week while Allcap was indeed up…ATH is now up 161% up !! this FY and Allcap becomes the second strategy to cross the 3 digit mark at 130%!!

All this is available at anybody’s fingertip with just 2 clicks a week at a nominal fees!

For Monday 22st Mar 2021, the proposed changes are:

Mi_LT_CNX200   : 0 ADD, 0 EXIT
Mi_MT_Allcap     : 0 ADD, 0 EXIT
Mi30 : 0 ADD, 3 EXIT
Mi50 : 1 ADD, 1 EXIT
Mi_ST_ATH          : 2 ADD, 2 EXIT
Mi 25                    : 1 ADD, 1 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 month which suit portfolio size of 10L and more.

In the LIVE product strategies,  there were mild changes and some ground was lost.

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 19.03.21
Mi25 : : 1 ADD, 1 EXIT
Mi30 : : 0 ADD, 3 EXIT
Mi40 : : 1 ADD, 1 EXIT
Mi50: : 1 ADD, 1 EXIT

Enclosed is the summary comparison of all LONG products for period 2016-2021 as well as individual highlights of each product

The flagship product that chases All time High stocks using a 10 stock portfolio rebalanced weekly

The broader based 20 stock portfolio that invests across all market caps and is weekly balanced
Our original smallcap product , a 25 stock momentum portfolio rebalanced weekly and is available both in smallcase and LIVE version
Diversified 30 stock portfolio from CNX500 universe that is rebalanced weekly and is very popular and is available as both smallcase and LIVE product
50 stock highly diversified mid and smallcap portfolio weekly rebalanced. Available in both LIVE and smallcase format
20 stock Large caps from CNX200 only portfolio weekly rebalanced. Slow low churn, suits low risk investors.
A Nifty next 50 index momentum portfolio of 10 stocks rebalanced monthly that can be a great substitute for index investors. Invests only in large cap stocks in the 51 to 100th mkt cap range
Our FREE nifty and Gold ETF smallcase that beats the bank and keeps the equity curve reasonably sane all through. Uses the synergies between Equities and Gold and is balanced monthly.

Some Testimonials of the week.

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…!!

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    The Good Bad and Ugly Weekly Report 19 Mar 2021