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Yet another week of in-decision in the market for the frontline benchmark indies. Both Nifty and BankNifty remains totally non trending for the entire week where as the broader indices gained ground.
STAIRS our trading product was hit hard again this week. The futures models have not been able to break the profit range last two quarters. On balance so far for CY 2020, STAIRS has accumulated 2900+ points on NF and 9450+ points on BN.
There are two models to trade using futures. For Model 1, which trades at 3X leverage (you can easily trade at a lower leverage too if you like) , capital of 10L at start of the year is now at 15.8L and for Model 2, where leverage is left to the user, NF has gained 1713 points and BN 6085 points per lot basis.
The Options4STAIRS module of STAIRS also lost ground this week. The nature of these products is such that the returns are never linear and come in chunks.
The Options4STAIRS works off 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 .
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.
In fact our simple options buy strategies are the biggest surprise for most our users who always thought buying options is a losers game !!
Both these models (options buy and options spreads) above track STAIRS signal and have defined risk per trade. The Options4STAIRS has now made the STAIRS product accessible to lower capital , is risk defined and has better performance dynamics. For volatile weeks like these options models are easier to handle and trade.
More details on the options models are here
To subscribe to STAIRS click here.
The Weekendinvesting Smallcases did well and were all up. There is a decisive shift happening in the retail mutual fund space. Investors are increasingly taking charge of their investments and getting better value for their money spent. The bang for the buck is certainly MUCH BETTER and the peace of mind having CONTROL in your own hand is incomparable.
Our flagship Mi ATH which chases all time high stocks is now near the three digit mark that is eagerly awaited!
For Tuesday 1 Dec 2020, the proposed changes are:
Mi_LT_CNX200 : 0 ADD, 0 EXIT
Mi_MT_Allcap : 0 ADD, 0 EXIT
Mi_ST_ATH : 1 ADD, 1 EXIT
Mi 25 : 0 ADD, 0 EXIT
NNF10 : NO CHANGE / WEIGHTS REBALANCED
Liquid bees is not being included as an add or exit.
(IF YOUR PF IS LESS THAN 2 LACS YOU CAN AVOID BUYING LIQUIDBEES BY CUSTOMIZING YOUR ORDER IN CASE MIN INVESTMENT IS BEYOND YOUR EXISTING CAPITAL)
Last month we started a new Smallcase Mi _NNF10. This 10 stock smallcase is based on finding momentum within the top 51st to 100th NSE stock by market capitalization. These are all liquid and large cap stocks. The strategy will have a monthly rebalance and will allocate 10% capital to each pick . At the end of each month it will rebalance into the 10 stocks for the next month.
The strategy has been tested thoroughly over last decade of data and has beaten the benchmark in all respects over a medium and long term.
| Mi_NNF10 | NiftyNext50 | |
| CAGR | 16.86% | 10.44% |
| MAX DD | 23.90% | 32.40% |
The smallcase has been launched at a festive introductory prices of quarterly 1999 and annual plan at 7499 for first few hundred users in next few weeks.
I believe this is a great passive strategy for folks who are wanting to diversify into index investing. This can not only beat index returns but provide a much needed low cost experience of managing your own monies yourself.
We had a great response in the first week with a few hundred users joining in taking advantage of the introductory prices. A detailed report on the first month performance will be sent this weekend.
In the LIVE product strategies, there was overall smart gains as smallcap index seem to be breaking out
Mi50 the widest diversified portfolio doing the best among all and achieving nearly 60% returns for the FY is the biggest surprise of all portfolios.
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.
This week again all long portfolios were very Good, Options was bad and futures on STAIRS was UGLY !!.
That is all this week. STAY SAFE and stay in peace ! Do share this newsletter with your friends who you think can benefit from the momentum way ! Send me your suggestion what you do or don’t like about our strategies, updates or anything else. We are always keen on listening to you!
Weekendinvesting is the work of a small boutique firm, run from home solely by myself along with my wife. My idea after 25 years of running larger setup is to now keep it small and be at the forefront of customer service. I are delighted to have a vibrant client base which has been very appreciative of my work and the approach to it. You may read many of the testimonials here. Please do help spread the word if you like the products.
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