The Good Bad and Ugly Weekly Review Dec 18th 202010 min read

To get this weekly report directly to your e-mail Click this

The rally continued in the broader market this week but banknifty kept away and was trendless. Several sectors like IT Pharma FMCG and Metals did quite well.

As is evident from the chart above NIFTY continued to be in trend mode while BNifty stayed sideways with the next big move awaited. It has been many weeks now for BNifty to have made a decisive move and that should be around the corner.

STAIRS our index trading product did better this week. The futures and the options models were in net gain though the futures models have not been able to break the profit range last two quarters.

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 16.4L and for Model 2, where leverage is left to the user, NF has gained 2030 points and BN 6119 points per lot basis. Model 2 does better in choppy markets where part profit booking helps.

The Options4STAIRS models gained better ground this week

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 .
Below are the four models we are running along with the monthly returns on the conservative model basis.

Nifty Options Buy model simply buys calls/puts when STAIRS Nifty is long /short It has done quite well this year

Bank Nifty Buy options model also has done well overall but in the last 2 quarters it has been in a drawdown

Nifty options Spread model has done quite well and has done well in Dec so far after a dull few quarters.

Bank Nifty options spread has had the worst run in the last few quarters and is in severe drawdown right now.

These are base models where advanced users can layer their own strategies of pyramiding or strike adjustment on top of these to better the returns if they can.

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.

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 gained mildly this week. I am very happy that smallcase is getting accepted rapidly and 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 successfully booked about 4X profits in ADANIGREEN and 2.5X in AARTIDRUGS recently. It is a great aggressive strategy to have as an additional tool in your investment tool box.

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.

For Monday 21th Dec 2020, the proposed changes are:

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

For LIVE Products we have executed today
Mi25 : : 1 ADD,1 EXIT
Mi30 : :2 ADD,0 EXIT
Mi40 : :0 ADD,0 EXIT
Mi50: :4 ADD,0 EXIT
Liquid bees is not being included as an add or exit.

The monthly rebalanced FREE smallcase NG5050 is a great starting point for a new user. This smallcase is a equal weight portfolio of the liquid Nifty and Gold ETFs by Nippon AMC. The smallcase is provided totally free and its performance over a longer period has been nothing short of spectacular. If you are not happy with your current funds, this is certainly something you should consider. This strategy has not seen a drawdown of more than 15% in the last 11 years.

More details on NG5050 are available here

Our recently introduced Smallcase Mi _NNF10 is a 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. As of now the FY2021 performance is +44.75%

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.

MAX DD23.90%32.40%

The smallcase was 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 few week with a few hundred users joining in taking advantage of the introductory prices. A detailed report on the first month performance was sent recently

More details on NNF10 are available here

In the LIVE product strategies,  there was no major gains and the strategies held ground well.

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.

Testimonial of the week.

I am constantly being told by my users how a gradual shift is happening from mutual funds to smallcases. This trend is going mainstream and I urge all such investors to try this medium with 5-10 percent of their funds, compare after a few quarters and then take the next step ahead. More testimonials can be read here

The markets are in a challenging position with virtually nobody knowing what happens next. All these strategies are designed keeping this UNKNOWN in mind so that each situation may be handled without getting surprised.

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!

To get this weekly report directly to your e-mail Click this

Related posts

October 11, 2019 by Weekend Investing

Practical insights for wealth creation

Join the thousands of regular readers of our weekly newsletter and other updates delivered to your inbox and never miss on our articles.

Thank you. You will hear from us soon.

Mail Sent Failed !

    Inline Feedbacks
    View all comments