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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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.
