Well, absolutely no fundamentals in this strategy…having said that, I have kept room for some discretion if there is a big red candle but lets say my sell signal is still not triggered, i might look around to see what caused the red candle…if there are things like fraud or ethical violations that have been detected, i might exit the stock. But other than that, just technical indicators.
Hi Sandeep… Nice strategy… Which main technical parameters you usually see while entering a stock and while exiting a stock…
RSI + Stochastic + Moving Averages ( if any unexpected movement in Stock )…
Having done extensive backtesting using different parameters though, I have to say it doesnt make much difference what you use over the long term. What matters is if your psychology is in tune with that strategy and can you stick with it through its ups and downs. Most momentum strategies have a positive expectancy at the end of the day. You need to pick what suits you.
Stability continues. No change in portfolio. Looks like only an unexpected election outcome can trigger a big down trend. I do anticipate some correction in the consensus case as well. In any case, so far so good with my portfolio.
Portfolio start date → Jan 23, 2024
Total returns → 17.5%
Hello sandeep,
Are you using any kinda algo method to track weekly closing prices… i googled on weekend trend trader, i got python script… by any chance you have created same thing for yourself… let me know… thanks
Regards
Manjunath C A
Hi Sandeep, Do you mind advise on top 3 Indicators. which you prefer to use.
Advance Thanks,
Well, my universe is the Nifty 500 and I have written a scanner to go through these 500 stocks and rank them as per my parameters. I only run this scanner if there has been an exit from my existing portfolio.
Looking through the portfolio for exit signals is a manual process since there’s some discretion there. But this doesn’t take much time since its just 20 stocks.
RSI, Stochastics along with moving averages.
But through my backtesting experience ( tested multiple strategies for the last 5 year period ), my conclusion is that if you want o use momentum as a strategy for investing, it doesnt make a lot of difference what indicators you use. Its optimal position sizing, robust execution and most importantly ruthless discipline is what will make your strategy triumph.
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There was some turbulence last week but nothing major so no sell signal was generated for any of the portfolio stocks. Portfolio continues as it is - while volatility might continue through the month of May, the real test for factor-based investors might come in June if election results are not in line with Market expectations.
Portfolio start date → Jan 23, 2024
Total returns → 12.2%