Starting Monday, 03rd April’ 2017 we are going LIVE with our Model Portfolios. We are launching 03 Portfolios simultaneously.
Mystic Wealth Momentum. (MWM)
In a nut-shell MWM strategy looks to capture momentum. It looks to buy stocks which are hitting a new high accompanied by huge volumes. The Exit is based on a Trend following Overlay.
The model portfolio starts with a corpus of Rs 10 lakhs. Position sizing entails buying 12 stocks with 5% each allocation. That deploys 60% of the corpus with remaining 40% in liquid bees as a dry powder.
While I believe in the power of automation, I also am a big follower of pattern recognition, concept of super stocks (Fundamentals backing momentum) and concentrated betting and therefore this remaining 40% dry powder would be used for that endeavor.
This is going to be a very inactive space. All the money would be parked in Liquid funds. Key features of MWV are highly concentrated bets. Do nothing or Swing Hard. The Key area where we would be searching for inefficiency would be demergers, spin-offs and turn-arounds.
The model portfolio starts with a corpus of Rs 10 lakhs. Position sizing entails buying less than 10 and more than 4 (25% max limit) stocks at any given time.
In a nut shell, MWO looks to short volatility. It is like providing insurance after the hurricane. We would also be indulging in earnings play, portfolio protection, covered calls etc.
This portfolio would start with a corpus of Rs 10 lakhs put into pledged liquid bees and intends to earn 1% a month. (over and above liquid fund dividend) We would also be using the liquid funds available with momentum and pledge of Value Buys to beef up this portfolio.
Money management entails not losing more than 1-5% of corpus on any single trade + control on over all portfolio heat.
Stay tuned as we create videos around key concepts of standard deviations, probability, skew and various strategies to keep you informed and updated.