I wanted to invest 5 lacs in this. what should be the % of allocation in each share and when to book the profit.
Kindly help
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@gautamashukla I have two other threads on Microcap Momentum and Smallcap Momentum running in this forum. If you read the initial messages you will get an idea on how the pf is created.
We always start with an equi-weighted portfolio. We allow the winners to run and the ones exiting to leave as soon as possible. The exit rules are clearly defined and it is purely based on ranking.
As regards your specific question of investment, I suggest you consult a Financial advisor who might be able to guide you better.
Z Score and Sharpe Ratios does give different result.
Reason being Sharpe ratio is considering fixed value for ALL stocks- say Annual FD returns but Z Score is considering the mean of ALL the stocks and stddev too for ALL.
Scanned against last and considered 8.5% annual FD return for the sharpe ratio, and got 15 similar stocks out of 20.
No one is to judge which is better. Even if we backtest, with so much overlap and just 5% allocation, I dont think it will yield much of a difference over say 5-6 years XIRR.
That being said, Z score makes more sense as we are already ranking based on returns.
Sharpe might be better in long term strategies like mutual funds. but ranking each stock based on sharpe and exiting it the next week/fortnight/month because it fell short of returns to qualify the list doesn’t make sense. Momentum strategy is short term whcih we will be running for long term. So sharpe will make sense if our rebalncing frequency is quarterly or semiannually. OR we can incorporate that when our PORTFOLIO starts showing more volatility (and not any individual stock)
Am I making any sense here? 
@alphaAKS With Sharpe returns, we are comparing the returns of the stocks and subtracting a risk free returns from it. If we are doing this for all stocks and then ranking, we can as well do it directly based on returns. As the subtracted value remains constant across all stocks it does not add value to do ranking after this. This has been the doubt that I always had.
However, with Z score, we are not ranking based on returns directly. Z score is a statistical number to show how much the stock is away from the Mean and on which side. We are ranking based on this number. In effect, we are not ranking directly based on returns, but on a factor that checks where the stock lies within its universe.
And, if we are checking over multiple look back periods, I think Z score is one of the better indicators for ranking.
Update for entry on 2nd December 2024
Based on ranking:
- DIXON
- KALYANKJIL
- OFSS
- PERSISTENT
- COFORGE
- POLICYBZR
- INDHOTEL
- FORTIS
- LLOYDSME
- VOLTAS
- COROMANDEL
- LUPIN
- PAYTM
- BSE
- IREDA
Based on A → Z for easy tracking:
- BSE
- COFORGE
- COROMANDEL
- DIXON
- FORTIS
- INDHOTEL
- IREDA
- KALYANKJIL
- LLOYDSME*
- LUPIN
- OFSS
- PAYTM*
- PERSISTENT
- POLICYBZR
- VOLTAS
Exits:
POWERINDIA and RVNL make an exit.
Entries:
LLOYDSME and PAYTM make an entry.
Note: The above information is provided for educational purposes only. Please consult your Financial advisor before any investment.
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Hello sir, First of all big big thank you for making you study live and make it easily traceable.
I am beginner in momentum investing and has been studying your momentum portfolio study and a Smallcap momentum portfolio video.
As per sheet, we have identified three groups of stocks: 240 days, 120 days, and 6 months+12 months combination. Also we have given indiviual rank in those 3 group.
Then i am unsure how to select the final 15 stocks to stay in their midcap momentum portfolio.
I have tried trial and error but have not been able to get as desired output.
Also, unsure which group to look closely at to add or remove stocks.
Can you please help to understand this?
Thank you once again.
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@Kalpesh You have just consider 6m + 12m performance. The others for reference only.
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Thank you, sir, that’s clear my doubt.
Sir I do follow all of your 3 momentum portfolio. This week didn’t seen update of current re-structure. Am I missing something or holding of earlier week will continue??
@Jiitt007 I have posted update for Microcap and Smallcap pfs. Midcap pf is rebalanced twice a month only.
The next rebalance is on 16th.
Update for entry on 16th December 2024
Based on ranking:
- DIXON
- KALYANKJIL
- POLICYBZR
- PERSISTENT
- COFORGE
- OFSS
- BSE
- INDHOTEL
- FORTIS
- PAYTM
- VOLTAS
- LLOYDSME
- LUPIN
- POWERINDIA
- CRISIL
Based on A → Z for easy tracking:
- BSE
- COFORGE
- CRISIL*
- DIXON
- FORTIS
- INDHOTEL
- KALYANKJIL
- LLOYDSME
- LUPIN
- OFSS
- PAYTM
- PERSISTENT
- POLICYBZR
- POWERINDIA*
- VOLTAS
Exits:
COROMANDEL and IREDA make an exit.
Entries:
CRISIL and POWERINDIA make an entry.
Note: The above information is provided for educational purposes only. Please consult your Financial advisor before any investment.
Update for entry on 01st Jan 2025
Based on ranking:
- DIXON
- POLICYBZR
- OFSS
- LLOYDSME
- COFORGE
- LUPIN
- INDHOTEL
- KALYANKJIL
- BSE
- PAYTM
- FORTIS
- IPCALAB
- PERSISTENT
- CRISIL
- POWERINDIA
Based on A → Z for easy tracking:
- BSE
- COFORGE
- CRISIL
- DIXON
- FORTIS
- INDHOTEL
- IPCALAB*
- KALYANKJIL
- LLOYDSME
- LUPIN
- OFSS
- PAYTM
- PERSISTENT
- POLICYBZR
- POWERINDIA
Exits:
VOLTAS makes an exit.
Entries:
IPCALAB makes an entry.
Note: The above information is provided for educational purposes only. Please consult your Financial advisor before any investment.
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Updated list for the week starting 06th Jan please…
“Rebalance is done on 1st and 16th of every month”
Check the first post on this thread
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According to Viswanath B’s Midcap momentum portfolio theory, the Midcap portfolio is updated every 15 days (twice a month).
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Update for entry on 16-Jan-2025
Based on ranking:
- LLOYDSME
- BSE
- DIXON
- INDHOTEL
- FORTIS
- POLICYBZR
- COFORGE
- PERSISTENT
- MUTHOOTFIN
- LUPIN
- IPCALAB
- COROMANDEL
- BHARTIHEXA
- CRISIL
- PAYTM
Based on A → Z for easy tracking:
- BHARTIHEXA*
- BSE
- COFORGE
- COROMANDEL*
- CRISIL
- DIXON
- FORTIS
- INDHOTEL
- IPCALAB
- LLOYDSME
- LUPIN
- MUTHOOTFIN*
- PAYTM
- PERSISTENT
- POLICYBZR
Exits:
KALYANKJIL, OFSS and POWERINDIA make an exit.
Entries:
BHARTIHEXA, COROMANDEL and MUTHOOTFIN make an entry.
Note: The above information is provided for educational purposes only. Please consult your Financial advisor before any investment.
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Just for Analysis :
Stocks which were purchased on 1st January , after 15 days , were at
- Dixon -6%
- Policybazar -14%
- OFSS -19%
- Lloydsme +14%
- Coforge -9%
- Lupin -11%
- Indhotel -7%
- kalyankjil -30%
- BSE +11%
- Paytm -12%
- Fortis -6%
- Ipcalabs -8%
- Persistent -5%
- Crisil -11%
- Powerindia -15%
so if weights are equal, then overall portfolio is down during 15 days by -8.53%.
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How does DIY momentum portfolio compare with Nifty Midcap momentum / Alpha 30 funds after costs and taxes?
Update for entry on 3rd Feb 2025.
Based on ranking:
- LLOYDSME
- BSE
- DIXON
- MUTHOOTFIN
- COROMANDEL
- FORTIS
- INDHOTEL
- POWERINDIA
- POLICYBZR
- PERSISTENT
- BHARTIHEXA
- COFORGE
- JUBLFOOD
- CRISIL
- LUPIN
Based on A → Z for easy tracking:
- BHARTIHEXA
- BSE
- COFORGE
- COROMANDEL
- CRISIL
- DIXON
- FORTIS
- INDHOTEL
- JUBLFOOD*
- LLOYDSME
- LUPIN
- MUTHOOTFIN
- PERSISTENT
- POLICYBZR
- POWERINDIA*
Exits:
IPCALAB and PAYTM make an exit.
Entries:
JUBLFOOD and POWERINDIA make an entry.
Note: The above information is provided for educational purposes only. Please consult your Financial advisor before any investment.
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@ketakidiya Will check and let you know.