@visuarchie I have created the Basket today in Zerodha but was able to create with only 20 stocks in the basket being max limit. Means we have to create another basket for remaining 5 stocks?. Also another basic question, is it ok to execute based on Market Price or Limit order. I presume there is no SL to be fixed. Please correct me if i am wrong as i am planning to execute based on this shortly. Sorry for asking if these questions are already covered above or in the videos
@hariharancj You can create the pf using more than one basket as this is a one time exercise. When we do rebalancing, the number of changes will not be very many.
I go with Market price, though many will say it is better to go with Limit order. For the quantities we order, the difference is marginal and will not be significant. If you go with limit orders, it is quite possible some orders may not go through when we do a basket order.
No SL to be fixed as our mechanism is based on weekly rebalances.
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Thank you so much for your quick response. I have created 2 baskets (one with Top 20 and another with bottom 5 stocks). I will go as per Market Price as it make more sense for the quantities as you said. Got your point about SL. Thank you so much once again for devising this strategy.
This is my list for 27th May, in ranking order of 1-25.
12 months before date: 25/5/2023
6 months before date: 24/11/2023
KIRLOSENG
KPIGREEN
PURVA
VOLTAMP
IFCI
NETWEB
CHOICEIN
TECHNOE
RTNPOWER
TVSHLTD
ANANTRAJ
MSTCLTD
ARVIND
TARC
ELECTCAST
KESORAMIND
STAR
SCI
WOCKPHARMA
BALMLAWRIE
TIMETECHNO
KIRLOSBROS
JPPOWER
AHLUCONT
IIFLSEC
A-Z order of ranking:
AHLUCONT
ANANTRAJ
ARVIND
BALMLAWRIE
CHOICEIN
ELECTCAST
IFCI
IIFLSEC
JPPOWER
KESORAMIND
KIRLOSBROS
KIRLOSENG
KPIGREEN
MSTCLTD
NETWEB
PURVA
RTNPOWER
SCI
STAR
TARC
TECHNOE
TIMETECHNO
TVSHLTD
VOLTAMP
WOCKPHARMA
@visuarchie Please check if this matches your list
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@stuti_agarwal Small changes are there. My 1 year look back is 26/05/2023. This might explain the difference. I will post my list later.
Update for entry on 27th May 2024
50EMA (20296) > 200EMA (18157); hence, we can continue without any change.
Based on ranking:
- KIRLOSENG
- KPIGREEN
- PURVA
- IFCI
- KESORAMIND
- VOLTAMP
- NETWEB
- RTNPOWER
- CHOICEIN
- TECHNOE
- ANANTRAJ
- TARC
- MSTCLTD
- ARVIND
- ELECTCAST
- SCI
- STAR
- BALMLAWRIE
- WOCKPHARMA
- KIRLOSBROS
- TIMETECHNO
- IIFLSEC
- JPPOWER
- AHLUCONT
- MOIL
Based on A → Z for easy tracking:
- AHLUCONT*
- ANANTRAJ
- ARVIND
- BALMLAWRIE
- CHOICEIN
- ELECTCAST
- IFCI
- IIFLSEC*
- JPPOWER*
- KESORAMIND
- KIRLOSBROS
- KIRLOSENG
- KPIGREEN
- MOIL
- MSTCLTD
- NETWEB
- PURVA
- RTNPOWER*
- SCI*
- STAR
- TARC*
- TECHNOE
- TIMETECHNO
- VOLTAMP
- WOCKPHARMA
Exits:
BASF, GANESHHOUC and NEWGEN make an exit.
INGERRAND, THOMASCOOK and TVSHLTD stay within the top 30 and hence remain.
Entries:
RNTPOWER, SCI and TARC enter.
AHLUCONT, IIFLSEC and JPPOWER cannot enter as there is no vacancy.
There is only one difference in mine. Instead of “MOIL” I have “TVSHLTD”
@visuarchie My list exactly matches to this. How to calculate EMA as the excel file had DMA formula. Should i change this formula?
Also when i am creating the first order (Monday 28th May) can i include the ones which is newly entered or should i stick to the list mentioned above (the ones which is still under Top 30)
@visuarchie One question - Do you maintain different demat account for Microcap and Smallcap to see the portfolio performance? If yes, I believe you are following other strategy as well like Mid cap. So do you have separate demat account for that as well?
@kumars1672 Yes, I maintain different demat accounts. You can see the pf performance even without that. You can maintain a separate pf monitoring spreadsheet.
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@hariharancj Good that you are also getting the same list of stocks.
Not required immediately; I will try and prepare a post on how to calculate EMA in the sheet. There are a lot of references online that can also be used.
If someone is starting afresh, you should start with the current list of top ranked stocks. Please do not worry about stocks below 25th rank.
Please note that I am not an investment advisor. I am just sharing my learnings for educational purposes.
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Thank you so much. Got the point
Went through the videos @visuarchie very informative.
I have been experimenting with a basic price-based momentum template [i.e. compare overall returns over 6 months and 12 months for Nifty200 universe]. I keep the size highly concentrated (limited to 3-5 picks) and I have also observed that the performance of the 6M portfolio is much better than both the 3M and 12M portfolios.
However, I was never convinced with the method as I was just using “overall returns” and as you rightly pointed out in your video, you end up having at times few wild cards, which may be false positives in nature. 3M was very volatile, while 12M kinda couldn’t pick “real momentums” early on.
I liked how you filtered the noise using both standard deviation and distribution of momentum score.
Since my observation was that 6M worked better than 12M, I shall experiment with your algo keeping 6M slightly overweight (maybe ~60-65%).
Thanks for educating us on this topic.
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Very useful feedback. There is a big risk with a highly concentrated pf. Might be better if you expanded a little more and go up to 10 or 15 stocks. Typically, people invest in the top 10%.
For sometime I have been monitoring a pf with 70% weightage for 6m performance. I have not seen any significant out-performance. Therefore, I am continuing with equal weightage.
Will wait for your feedback on 60 - 65% weightage that you are planning.
I also prefer small caps, because it is there you may find hidden gems. However, as Mr Raval’s illuminating talk shows, that is not easy. Of course, as Deng Xiaoping famously said “It doesn’t matter whether a cat is black or white, as long as it catches mice .” So, even in large caps a momentum stock (like the PSEs were recently) or a beaten down sector may create enormous wealth, but every investor’s fantasy is landing a 10 or even 100 multi-bagger. They are more likely to be found in the small caps, micro or otherwise.
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Here the idea and focus is not on a single stocks, hence there is no search for multibaggers. A portfolio of trending stocks is followed here, and as such, this is a CAGR/XIRR game. And as there are no fundamental checks involved, many stocks hitting stop losses and exiting the PF happens, which may not necessarily the case with individual picks. One can add more when the price falls, there need not be a stop loss as such, in the first place.
Allocation, even if increased to an existing position which has been performing for months, may not add great value by itself, as there will be many other stocks which will have more impact, on both sides.
This is more a process driven, passive approach, practiced over lengthy periods.
Update for entry on 01st Jun 2024
50EMA (20396) > 200EMA (18309); hence, we can continue without any change.
Here is the list i am getting this week
Based on Ranking
KPIGREEN
RTNPOWER
KIRLOSENG
PURVA
TECHNOE
IFCI
NETWEB
CHOICEIN
ARVIND
VOLTAMP
KESORAMIND
STAR
ANANTRAJ
JKIL
TARC
MSTCLTD
KIRLOSBROS
JYOTICNC
AZAD
IIFLSEC
THOMASCOOK
WOCKPHARMA
ELECTCAST
JPPOWER
ASTRAMICRO
Based on A → Z for easy tracking:
ANANTRAJ
ARVIND
ASTRAMICRO
AZAD
CHOICEIN
ELECTCAST
IFCI
IIFLSEC
JKIL
JPPOWER
JYOTICNC
KESORAMIND
KIRLOSBROS
KIRLOSENG
KPIGREEN
MSTCLTD
NETWEB
PURVA
RTNPOWER
STAR
TARC
TECHNOE
THOMASCOOK
VOLTAMP
WOCKPHARMA
MOIL, TIMETECHNO, SCI is still within Top 30 and shall be continued if invested
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@hariharancj You have nearly stolen my update!!! Small differences; all stocks in the list are the same. Order is slightly different. Also, AZAD is less than 6 months. Therefore, I will not include in my pf for now. Will post my update.
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Update for entry on 3rd June 2024.
50D EMA (20368) > 200D EMA (18281); hence, we can continue without any change.
- KPIGREEN
- RTNPOWER
- KIRLOSENG
- PURVA
- TECHNOE
- NETWEB
- IFCI
- CHOICEIN
- ARVIND
- VOLTAMP
- KESORAMIND
- STAR
- ANANTRAJ
- JKIL
- MSTCLTD
- TARC
- KIRLOSBROS
- JYOTICNC
- AZAD
- THOMASCOOK
- IIFLSEC
- WOCKPHARMA
- ELECTCAST
- JPPOWER
- ASTRAMICRO
Based on A → Z for easy tracking:
- ANANTRAJ
- ARVIND
- ASTRAMICRO*
- AZAD*
- CHOICEIN
- ELECTCAST
- IFCI
- IIFLSEC*
- JKIL*
- JPPOWER*
- JYOTICNC*
- KESORAMIND
- KIRLOSBROS
- KIRLOSENG
- KPIGREEN
- MSTCLTD
- NETWEB
- PURVA
- RTNPOWER
- STAR
- TARC
- TECHNOE
- THOMASCOOK
- VOLTAMP
- WOCKPHARMA
Exits:
BALMLAWRIE, INGERRAND and TVSHLTD make an exit.
MOIL, SCI and TIMETECHNO stay within the top 30 and hence remain.
Entries:
IIFLSEC, JKIL and JYOTICNC make an entry.
AZAD is higher on momentum but is less than 6m on the bourses; hence has not been considered.
ASTRAMICRO and JPPOWER cannot enter as there is no vacancy.
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Haha😊. All credits to you for teaching such an amazing concept and infusing confidence in this structured method of investing. It has given more confidence now. I think slight change of order in my list is due to some data update error in my file. Small cap list has come very precise and only 1 stock was in different order. I think over a period time this gets fixed.
Thanks a ton again!!
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