The Good Bad and Ugly weekly report 5 Mar 20216 min read

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The markets remained very choppy with the Nifty doing better than the Bank Nifty but the breadth of the market continued to take a beating towards the end of the week. The rising US yield has put the brakes on all risk assets. By the middle of the week there were some nice gains but they were given up and more by the end. Some segments in the smallcap and midcaps continued to outperform.

STAIRS our index trading product got hit a bit in this choppiness and gave up some ground.

The strategy has already accumulated near 5800 points on BankNifty and near 1775 points on the Nifty in CY 2021

Trend followers using STAIRS we down in double digits from last week. ! On a 3X leverage, capital of 10L became 16L+ in BN and 13.6 Lacs in Nifty futures just in 2 months!. 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 50% and 45% 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
Our STAIRS Discovery webinar series has met with a resounding success with thousands attending it. We will soon be releasing its recording for every body to go through

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 did not fall this week also and is now up 163% up from 145% last week !! this FY and Allcap becomes the second strategy to cross the 3 digit mark at 119%!! Mi25 the smallcap wonder is also up 96%!

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

For Monday 8st Mar 2021, the proposed changes are:

Mi_LT_CNX200   : 0 ADD, 0 EXIT
Mi_MT_Allcap     : 1 ADD, 1 EXIT
Mi30 : 1 ADD, 1 EXIT
Mi50 : 0 ADD, 0 EXIT
Mi_ST_ATH          : 0 ADD, 0 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 which suit portfolio size of 10L and more. Detailed blogs on both will be released next week. By end of the quarter we will add the new product Mi SWING

In the LIVE product strategies,  there were good gains despite the market choppiness.

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 05.03.21
Mi25 : : 0 ADD, 0 EXIT
Mi30 : : 1 ADD, 1 EXIT
Mi40 : : 0 ADD, 0 EXIT
Mi50: : 0 ADD, 0 EXIT

Testimonials of the week.

Gold has taken a beating in the last 7 months, primarily on rise of US yields. There may be some more time to go but I remain a firm believer in its diversification and inversely correlation aspect to the stock markets. One should always create exposure to this and allocate as per comfort.

The emerging market Asia ETF EEMA which the Nifty had been closely tracking has deviated in last week or so and it remains to be seen when this deviation will close. This may be warning signs for our markets.

That is all from my end.
Have a safe week…!!

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    2 years ago

    Will you guide us when to enter and when to exit the position.