The Good Bad and Ugly weekly report 29 Jan 2021

January 29, 2021 4 min read

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Finally after two weeks of indecision the market gave up the bullish trend and corrected through the week. Bank Nifty however recovered a bit ahead of the closing in the last session. It was expected that ahead of the budget some profit booking was expected and the Emerging markets funds also saw a retreat with FII selling all through the week.

STAIRS our index trading product did very well this week and ended the month of Jan 2021 with super gains. The new year has started well and mostly 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 .

As can be seen from the table above just simple option buying yielded 20% and 13 % gain on capital in NF and BN respectively in Jan 2021.

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 losses but nothing majorly given up.

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 117%!! this FY and dropped mildly this week !!
All this is available at anybody’s fingertip with just 2 clicks a week!

Unbelievable to me as well !!!

For Monday 1st Feb 2021, the proposed changes are:

Mi_LT_CNX200   : 0 ADD, 0 EXIT
Mi_MT_Allcap     : 0 ADD, 3EXIT
Mi_ST_ATH          : 1ADD, 5 EXIT
Mi 25                    : 0 ADD, 0 EXIT

Monthly NNF10 saw 3 EXITS and 3 ADDS

For LIVE Products proposed changes for week ended 29.1.21
Mi25 : : 0 ADD, 0 EXIT
Mi30 : : 2 ADD, 3 EXIT
Mi40 : : 0 ADD,0 EXIT
Mi50: : 0 ADD, 3 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 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.

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 mild losses in most of the strategies especially the smallcap ones.

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.

Having non discretionary systems managing your money is so much peace of mind. You really have to experience it to know it !!

Have a safe week… The vaccine is just around the corner !!

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    The Good Bad and Ugly weekly report 29 Jan 2021