The Good Bad and Ugly Weekly Report 5 Feb 2021

February 5, 2021 4 min read

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A remarkably strong week marked with a successful Budget and good support from the international markets, the indices were in seventh heaven all through the week

STAIRS our index trading product did crazily well this week and ended the first 5 weeks of 2021 with super abnormal gains. The new year has indeed started well

The strategy has already accumulated 6800 points on BankNifty and near 1700 points on the Nifty in 2021

Trend followers ruled this week ! On a 3X leverage, capital of 10L became 18L in BN and 13.5 Lacs in Nifty futures. 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 58+ % gain 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 will soon launch a webinar series to explain STAIRS and also have one on one video sessions to iron out your doubts.
To subscribe to STAIRS click here.

The Weekendinvesting Smallcases were 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 is now up 131%!! this FY and Allcap becomes the second strategy to cross the 3 digit mark at 101.7%!!

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

Unbelievable, isn’t it !!!

For Monday 8th Feb 2021, the proposed changes are:

Mi_LT_CNX200   : 0 ADD, 0 EXIT
Mi_MT_Allcap     : 2 ADD, 0EXIT
Mi_ST_ATH          : 3 ADD, 0 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.

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 good gains 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.

For LIVE Products proposed changes for week ended 05.02.21
Mi25 : : 1 ADD, 1 EXIT
Mi30 : : 1 ADD, 0 EXIT
Mi40 : : 0 ADD, 0 EXIT
Mi50: : 3 ADD, 1 EXIT

So how do you plan to manage your funds ? Do you have the time to do so ? If yes that is great, if no, do not hesitate to seek help and tag along a successful portfolio. Worst case scenario, you may not get any superior returns but will learn important lessons in discipline and portfolio based approach.

Have a safe week…!!

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    The Good Bad and Ugly Weekly Report 5 Feb 2021