Microcap momentum portfolio

41

What is Stop loss applied here please

42

Please read through all the posts in the two threads on Small cap and microcap, you will get answers to these questions. He don’t apply a stop loss, but exits based on a criteria.

2 Likes
43

Update for entry on 1st April 2024

As a result of index being rejigged, 70 stocks have been changed. Most of them have gone upward to the Smallcap index. 8 out of 25 and 10 out our top 30 stocks changed and as a result there are 11 changes in our pf mainly as a result of this rejigging.

Based on ranking:

  1. ELECTCAST
  2. KPIGREEN
  3. WOCKPHARMA
  4. KESORAMIND
  5. TARC
  6. VOLTAMP
  7. NEWGEN
  8. SANGHVIMOV
  9. EMUDHRA
  10. NEULANDLAB
  11. ARVIND
  12. MSTCLTD
  13. KIRLOSENG
  14. GULFOILLUB
  15. STAR
  16. PURVA
  17. ETHOSLTD
  18. IFCI
  19. TIMETECHNO
  20. ANANTRAJ
  21. ITDCEM
  22. CHOICEIN
  23. MANINFRA
  24. TVSHLTD
  25. JKTYRE

Based on A → Z for easy tracking:

  • ANANTRAJ
  • ARVIND
  • CHOICEIN
  • ELECTCAST
  • EMUDHRA*
  • ETHOSLTD
  • GULFOILLUB*
  • IFCI
  • ITDCEM*
  • JKTYRE
  • KESORAMIND*
  • KIRLOSENG
  • KPIGREEN*
  • MANINFRA*
  • MSTCLTD
  • NEULANDLAB
  • NEWGEN
  • PURVA*
  • SANGHVIMOV*
  • STAR
  • TARC*
  • TIMETECHNO*
  • TVSHLTD*
  • VOLTAMP
  • WOCKPHARMA

Exit:
ACE, ANANDRATHI, CHENNPETRO, GET&D, HBLPOWER, HSCL, INOXWIND, MAHSEAMLES, PAISALO, RAILTEL and SCHNEIDER exit.

Entry:
EMUDHRA, GULFOILLUB, ITDCEM, KESORAMIND, KPIGREEN, MANINFRA, PURVA, SANGHVIMOV, TARC, TIMETECHNO, TVSHLTD enter.

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44

Motilal Oswal Microcap Index Fund has given matching returns as your strategy. How much difference in return we can achieve by taking out 25 stocks out of 250 as per this strategy?

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45

@Mudit.Kushalvardhan I do not know how much returns Motilal Oswal Microcap Index fund has given; my XIRR for over 15 - 16 month is 74.7% as of end March 2024. I have two observations.

  1. Even with just 25 stocks, I find there are several occasions where I have laggards in my pf. With a pf carrying the entire 250 stocks, I am sure they must be holding a lot of low performers.

  2. I do a rebalance every week; in effect, I carry the strongest 25 stocks every week. When a fund is holding all 250 stocks until the next index change, I don’t believe they can be very efficient in terms of returns.

8 Likes
46

So vishwanath
If i also compare with your other thread , Basically the following Exit from micro but they enter into small momentum …yes ?
ACE, ANANDRATHI, CHENNPETRO, HBLPOWER, HSCL, INOXWIND, SCHNEIDER

1 Like
47

@LarryWink You are absolutely right! This also vindicates our choice of stocks.

6 Likes
48

Update for entry on 8th April 2024

Based on ranking:

  1. ELECTCAST
  2. KPIGREEN
  3. KESORAMIND
  4. WOCKPHARMA
  5. VOLTAMP
  6. TARC
  7. SANGHVIMOV
  8. GULFOILLUB
  9. NEWGEN
  10. STAR
  11. IFCI
  12. ARVIND
  13. CHOICEIN
  14. MSTCLTD
  15. TIMETECHNO
  16. JPPOWER
  17. KIRLOSENG
  18. IMFA
  19. ICIL
  20. ZENTEC
  21. PURVA
  22. TVSHLTD
  23. NEULANDLAB
  24. WABAG
  25. EMUDHRA

Based on A → Z for easy tracking:

  • ARVIND
  • CHOICEIN
  • ELECTCAST
  • EMUDHRA
  • GULFOILLUB
  • ICIL*
  • IFCI
  • IMFA*
  • JPPOWER*
  • KESORAMIND
  • KIRLOSENG
  • KPIGREEN
  • MSTCLTD
  • NEULANDLAB
  • NEWGEN
  • PURVA
  • SANGHVIMOV
  • STAR
  • TARC
  • TIMETECHNO
  • TVSHLTD
  • VOLTAMP
  • WABAG*
  • WOCKPHARMA
  • ZENTEC*

Exits:
JKTYRE and MANINFRA exit.
ANANTRAJ, ETHOSLTD and ITDCEM remain within the top 30 and hence remain.

Entry:
IMFA and JPPOWER enter.
ICIL, WABAG and ZENTEC cannot enter as there is no vacancy.

2 Likes
49

If backtested with portfolio size 10, what result you get, please.

50

@R_Sawkar As I have mentioned previously also, I do not have the resource to do any backtesting.
However, I can say that the reason for having 25 stocks (and not 10) is to minimise the risk. When you have 10 stocks only, the allocation is 10% for each stock. If and when it falls, it can affect the overall pf a lot. Whereas, when you have 25 stocks, the allocation is just 4% per stock and hence risk is less.

4 Likes
51

Update for entry on 15th April 2024.

There was some discussion about market sentiment and good time to shift to cash or anything else. I indicated that I will update 50DMA and 200DMA to confirm that the sentiment is still fine.

Currently, 50DMA > 200DMA and hence we are good to continue.

Based on ranking:

  1. KPIGREEN
  2. ELECTCAST
  3. KESORAMIND
  4. VOLTAMP
  5. PURVA
  6. WOCKPHARMA
  7. SANGHVIMOV
  8. TARC
  9. GULFOILLUB
  10. ARVIND
  11. CHOICEIN
  12. TIMETECHNO
  13. NEWGEN
  14. STAR
  15. IFCI
  16. MSTCLTD
  17. NEULANDLAB
  18. IMFA
  19. WABAG
  20. TVSHLTD
  21. JPPOWER
  22. KIRLOSENG
  23. ITDCEM
  24. ANANTRAJ
  25. ZENTEC

Based on A → Z for easy tracking:

  • ANANTRAJ
  • ARVIND
  • CHOICEIN
  • ELECTCAST
  • GULFOILLUB
  • IFCI
  • IMFA
  • ITDCEM
  • JPPOWER
  • KESORAMIND
  • KIRLOSENG
  • KPIGREEN
  • MSTCLTD
  • NEULANDLAB
  • NEWGEN
  • PURVA
  • SANGHVIMOV
  • STAR
  • TARC
  • TIMETECHNO
  • TVSHLTD
  • VOLTAMP
  • WABAG*
  • WOCKPHARMA
  • ZENTEC*

Exits:
EMUDHRA and ETHOSLTD exit.

Entry:
WABAG and ZENTEC enter.

4 Likes
52

Can you also keep updating the returns when you post the stock list. This will help understand how much alpha the strategy provides as compared to index?

3 Likes
53

As I mentioned previously also, I will not be doing this. The main reason is that returns are hugely variable depending on the longevity of the stock in the pf (and consequently, its weightage) and the time someone enters the pf.

54

Hi - i think you already may have answered this in terms of lowering risk but if we reduce the size to just 10 stocks would it be possible to quantify the impact on returns - i guess this will increase returns but will open up a huge potential for risk as its now spread over much lesser number of stocks. another point on which request your input is on momentum 200 index which also seems to have returned around 70% last FY

55

@vamsi00797 You have captured the risk / rewards correctly. I do not have enough resources to quantify the risks or the impact on returns.

Nifty 200 is a very good index as it captures the top 200 stocks in the country. It is majorly large cap with a small portion of midcap. Therefore, I expect over the longer term the lower caps like smallcap or microcap will give better returns.

3 Likes
56

Could you please share how to do daily return calculation for the last 6 months ? Or goole work sheet ? That helps

57

Please take a master class on creating Nd maintaining of this sheet

58

@vishweshwar_kadiyala You have to pull the daily closing price. Then calculate the 6 months or 1 year return. The other thing we do is the calculation of daily price change using this info. We have to use the last 6m or 1 year data to calculate the standard deviation.

Please see below. This is how the table will look. We have to do this for all stocks in the index.

AARTIDRUGS
27/03/2024 440.80 -0.236%
28/03/2024 434.30 -0.645%
01/04/2024 457.40 2.251%
02/04/2024 468.20 1.014%
03/04/2024 474.70 0.599%
04/04/2024 487.75 1.178%
05/04/2024 492.65 0.434%
08/04/2024 487.30 -0.474%
09/04/2024 513.05 2.236%
10/04/2024 508.00 -0.430%
12/04/2024 504.20 -0.326%
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59

@visuarchie
Vishwanath, on your thread i saw multiple questions “how to …price range>ranking>daily change>standard deviation>momentum ratio>ranking again>mean-standard deviation of population”

While i salute your efforts, you’ve answered every question. how if you give a short webinar or may be a short video, of explaining the whole process ?

It can certainly help lazy bloke like mei. :stuck_out_tongue:. but its just a suggestion.

1 Like
60

Thanks Vishwanth ! A master class really helps… Is there automated way to pull the last 6 months or 1 year price and calculate as the date changes? How to adjust for the holidays etc