Hello Basu Sir,
I would like to thank you for sharing you insights on the forum. You are presenting a very real and practical side of the approach with both its positives and limitations. This has been very inspirational for me and I too started creating some screens and methods for screening stocks.
I have started with basic momentum and low volatility screens with a 3mo time frame for each investment set. Few screens I am using are positive to negative return days>1, low SD in daily returns over the year and past three months etc.
Few questions abt Q30 (feel free to disclose as much u want, as its your edge)
- I was wondering since your strategy is a buy and hold for three months -done each month, do you provide higher weight age to the previous three month performance as compared to the whole year both in terms of technical and fundamental factors in the screen?
- Since the strategy is run every month and not just after the quarterly results, do you keep tabs on news etc related to the companies currently in the basket and may decide to alter stoploss based on some adverse events?
- I see that the April tranch was in the blue but you say it was stopped out and held in cash. Do you keep a trailing stop? Do you keep or plan to keep the stopped out cash in liquid fund for the remaining duration?
thank you.