๐ธ We buy a basket of 5 stocks every Monday and sell them all on Friday.
๐ธ Yes, it's that simple.
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A backtested ๐ฏ๐ฎ๐๐ธ๐ฒ๐ ๐ฎ๐ฝ๐ฝ๐ฟ๐ผ๐ฎ๐ฐ๐ต trading strategy ๐ ๐
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๐ธ We buy a basket of 5 stocks every Monday and sell them all on Friday.
๐ธ Yes, it's that simple.
๐ธ Stocks in general keep going up & down, no rocket science there.
๐ธ But, interestingly some stocks when they go down considerably, they bounce back to some extent.
๐ธ This model tries to profit from such up moves through a basket of stocks
๐ธ Universe - NSE500
1๏ธโฃ Create a basket of stocks that have the lowest returns in the past.
2๏ธโฃ Filter the stocks based on turnover to check for liquidity.
3๏ธโฃ Select stocks with the best odds to go up.
๐ธ ๐๐ ๐ถ๐ - Exit anytime during the day on Friday.
๐ธ Stocks are known to mean revert, meaning if a stock goes down, it tends to move upwards again, this model tries to capture that reversion.
๐ธ This phenomenon is more common and profitable in NIFTY 500 stocks when you have an upward bias.
๐ธ Works well when the stocks correct for a couple of days to weeks and bounce off from their lows.
๐ธ In a secular bull market when most of the stocks are in an uptrend with minor or no corrections and in the sideways market, as there won't be any stocks that pass through the model criteria, that's very rare though.
๐ธ If you have some funds to allocate to a positional model & can take time out just once a week to rebalance the stocks. Then, this is an ideal strategy for you.
๐ธ Being a positional strategy, it has limited risk and offers a consistent return profile.
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I like this heuristic, and have a few which are similar in intent to it:
Hiring efficiency:
How long does it take, measured from initial expression of interest through offer of employment signed, for a typical candidate cold inbounding to the company?
What is the *theoretical minimum* for *any* candidate?
How long does it take, as a developer newly hired at the company:
* To get a fully credentialed machine issued to you
* To get a fully functional development environment on that machine which could push code to production immediately
* To solo ship one material quanta of work
How long does it take, from first idea floated to "It's on the Internet", to create a piece of marketing collateral.
(For bonus points: break down by ambitiousness / form factor.)
How many people have to say yes to do something which is clearly worth doing which costs $5,000 / $15,000 / $250,000 and has never been done before.
Here's how I'd measure the health of any tech company:
— Jeff Atwood (@codinghorror) October 25, 2018
How long, as measured from the inception of idea to the modified software arriving in the user's hands, does it take to roll out a *1 word copy change* in your primary product?
Hiring efficiency:
How long does it take, measured from initial expression of interest through offer of employment signed, for a typical candidate cold inbounding to the company?
What is the *theoretical minimum* for *any* candidate?
How long does it take, as a developer newly hired at the company:
* To get a fully credentialed machine issued to you
* To get a fully functional development environment on that machine which could push code to production immediately
* To solo ship one material quanta of work
How long does it take, from first idea floated to "It's on the Internet", to create a piece of marketing collateral.
(For bonus points: break down by ambitiousness / form factor.)
How many people have to say yes to do something which is clearly worth doing which costs $5,000 / $15,000 / $250,000 and has never been done before.