The markets remained in a downward drift with global yield not yielding and all emerging markets remaining under pressure. The week witnessed some heavy profit booking and recovered only marginally on the last day. With monday being a trading holiday the markets will need to catch up to two days of global moves when it opens again on Tuesday morning next.
STAIRS our index trading product remained robust and gained this week. The Futures strategy has accumulated near 6400 points on BankNifty and near 1370 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 16.7L+ in BN and 12.5 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 55% and 35% gains on capital in NF and BN respectively in 2021 so far. The option sell spread model which is like an income generating model, has also done wonderfully well at 16-19% so far in CY2021
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
The Weekendinvesting Smallcases were hardly impacted despite the markets remaining weak this week and rather most of the strategies gained ground. When you have strong stocks 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.
The ATH portfolio gained this week to another ATH along with Allcap …ATH is now up 168% up !! this FY and Allcap becomes the second strategy to cross the 3 digit mark at 135%!!
All this is available at anybody’s fingertip with just 2 clicks a week at a nominal fees!
For Tuesday 30st Mar 2021, the proposed changes are:
Mi_LT_CNX200 : 0 ADD, 0 EXIT
Mi_MT_Allcap : 1 ADD, 1 EXIT
Mi30 : 2 ADD, 0 EXIT
Mi50 : 0 ADD, 0 EXIT
Mi_ST_ATH : 1 ADD, 1 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 mild changes and most 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 26.03.21
Mi25 : : 0 ADD, 0 EXIT
Mi30 : : 2 ADD, 1 EXIT
Mi40 : : 0 ADD, 0 EXIT
Mi50: : 0 ADD, 0 EXIT
Enclosed is the summary comparison of all LONG products for period 2016-2021*
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…!!