Smallcap momentum portfolio

Q&A: Questions & Answers Portfolio Q&A
549

@Mudit.Kushalvardhan Thank you sir

550

@vikrantp For any momentum pf, what is required is price action only. However, we add other indicators / strategies to reduce draw downs. Introduction of any other criteria will result in a reduction of returns.

In our case, in addition to price action, we are looking at reduced volatility.

I am not sure how much reduction in drawdowns you will get when you introduce VCP. If this factor can reduce drawdowns without losing on returns, it is fine. Otherwise, it does not help very much.

Ultimately, what we are looking for, is peaceful investing. Any system that we develop that can guarantee peace of mind is what we need.

1 Like
551

@Mudit.Kushalvardhan Off hand, I do not have this info, will have to check my order book from the last one year / 18months to check this.

We should always look at minimum intervention. My view is that we should allow the system to run and follow it fully.

If a stock is still in the pf inspite of going down, it really means that it is still better than the others in the universe. The only exceptions can be when a stock enters a new universe after it has run up a lot. Example: JAIBALAJI - had run up a lot and then was brought into the smallcap 250 universe. It became part of the pf, but ever since, it has given -ve returns only. It is still there and I am waiting to see what happens (incidentally it wen tup 5% today).

3 Likes
552

If a stock is still in portfolio, despite going down in recent weeks or months, can be because before going down , it was in a very high upward journey, so that upward momentum is averaging out and giving it a place in portfolio. Just like due to past karma, somebody gets a good position. But it may be a start of its downward journey, and we dont want to be a part of that journey…that was my take actually. But offcourse , we cant be sure that its in a permanent downward journey or a temporary setback…

3 Likes
553

Actually VCP is volatility Contraction Pattern , introduced by Mark Minervini, to identify the entry points. It can be used for entering the stocks, at the most. But I dont think, it can reduce any kind of drawdowns or volatility of stocks already selected. I am getting VCP wrong or this is something else?

2 Likes
554

@Mudit.Kushalvardhan you are not wrong. Any criteria we introduce like standard deviation or VCP or turnover value or EMA is used to manage entry of stocks in the pf. And that is done to fine tune the performance.

Pf returns are governed by price action only. Anything else we do to fine tune will result in tempering the return while reducing drawdown.

Therefore, the efficacy of any criteria is evaluated by looking at returns and drawdowns.

1 Like
555

@Mudit.Kushalvardhan Checked today on another pf. I will be exiting a stock coming Monday with a loss of 17%. But as I keep repeating, we should look at pf basis.

2 Likes
556

@visuarchie , Your strategy is more watertight. Generally if you select top 20 stocks then unless the stock exit top 40 ( 2 times ur selected number) , you are not supposed to sell. But you sell immediately when stock goes out of top 25. So you are more strict about your exit criteria. Also your re-balancing is weekly, instead of bi-weekly or monthly. Hence , even if you dont follow any stop loss or dont sell when stock goes down substantially, its still OK, as you are already quite strict. But ppl like me who give the stock rope till it doesn’t cross 2 times the number and do bi-weekly or monthly re balancing, its better to have some mechanism like stop loss or some fixed percentage, below which you wont permit the stock to go.

1 Like
557

@Mudit.Kushalvardhan I agree with all your points. In spite of having a watertight system, the system made me hold on to a stock where I will end up with 17% loss before I exit.
But on a pf level, I am fine this week also.

1 Like
558

Update for entry on 29th July 2024

50EMA (16831) > 200EMA (14854); hence, we can continue without any change.

Based on ranking:

  1. COCHINSHIP
  2. JAIBALAJI
  3. HUDCO
  4. GRSE
  5. ARE&M
  6. POWERINDIA
  7. AEGISLOG
  8. ANANDRATHI
  9. SIGNATURE
  10. EXIDEIND
  11. GLENMARK
  12. KPIL
  13. BLUESTARCO
  14. SCHNEIDER
  15. NBCC
  16. DOMS
  17. VGUARD
  18. 360ONE
  19. CENTURYTEX
  20. WHIRLPOOL

Based on A → Z for easy tracking:

  • 360ONE*
  • AEGISLOG
  • ANANDRATHI
  • ARE&M
  • BLUESTARCO
  • CENTURYTEX*
  • COCHINSHIP
  • DOMS
  • EXIDEIND
  • GLENMARK
  • GRSE
  • HUDCO
  • JAIBALAJI
  • KPIL
  • NBCC
  • POWERINDIA
  • SCHNEIDER
  • SIGNATURE
  • VGUARD
  • WHIRLPOOL*

Exits:
None
APARINDS, GODRFYPHLP and JWL stay within the top 25 and hence remain.

Entries:
None
360ONE, CENTURYTEX and WHIRLPOOL cannot enter as there is no vacancy.

3 Likes
559

Just out of curiosity asking this, which is that stock that’s in 17% loss? You can choose to ignore if you don’t want to disclose. Thanks for your wonderful topics on momentum strategy.

560

SCI - Shipping Corporation

2 Likes
561

Can anyone share link for updated Google sheet for this smallcap momentum portfolio

562

Hi pl. Send the google.sheet and also let me know whether google sheetvis automatd or not

563

Google sheet is not automated. You will have to update it every week. You can pick up any of the previous sheets and update.

564

You can pick up any of the previous sheets shared and update.

565

Thanks cant we automate it?

566

It can be done, I guess. I do not have the resources for that.

567

Update for entry on 05th August 2024

50EMA (17016) > 200 EMA(15000); hence, we can continue without any change.

Based on ranking:

  1. COCHINSHIP
  2. GRSE
  3. POWERINDIA
  4. HUDCO
  5. GLENMARK
  6. 360ONE
  7. ARE&M
  8. JAIBALAJI
  9. GRANULES
  10. SCHNEIDER
  11. NUVAMA
  12. HSCL
  13. MOTILALOFS
  14. KPIL
  15. SUVENPHAR
  16. ANANDRATHI
  17. BLUESTARCO
  18. SIGNATURE
  19. DOMS
  20. VGUARD

Based on A → Z for easy tracking:

  • 360ONE*
  • ANANDRATHI
  • ARE&M
  • BLUESTARCO
  • COCHINSHIP
  • DOMS
  • GLENMARK
  • GRANULES*
  • GRSE
  • HSCL*
  • HUDCO
  • JAIBALAJI
  • KPIL
  • MOTILALOFS*
  • NUVAMA*
  • POWERINDIA
  • SCHNEIDER
  • SIGNATURE
  • SUVENPHAR*
  • VGUARD

Exits:
AEGISLOG, EXIDEIND, GODFRYPHLP, JWL, NBCC make an exit.
APARINDS stays within the top 25 and hence remains.

Entries:
360ONE, GRANULES, HSCL, MOTILALOFS and NUVAMA make an entry.
SUVENPHARM cannot enter as there is no vacancy.

2 Likes
568

12m : 4/8/2024
6m : 02/02/2024

COCHINSHIP
ARE&M
GRSE
POWERINDIA
HUDCO
JAIBALAJI
GRANULES
WHIRLPOOL
HSCL
EXIDEIND
SIGNATURE
BLUESTARCO
MOTILALOFS
360ONE
SCHNEIDER
DEEPAKFERT
KAYNES
NUVAMA
ANANDRATHI
APARINDS

why there is so much difference in list? i have updated stocks prices.
plz help me