Mid-Small Cap (MIP-12 with SL)

Portfolio: Mid & Small-cap Stocks.

You can define the investment based on number of stocks in the portfolio.

You need specific tweaks when applying momentum strategies to mid and small-cap stocks. This framework serves as a guideline for making those adjustments.

Consider elements like a 50% retracement or the use of stop-loss mechanisms—these can be effective when working within mid and small-cap universes. You can also apply the Tadka strategy to further enhance returns. Use this as a starting point to craft your own momentum investing plan for mid and small caps. Back-test thoroughly to build conviction.

The following components of the Momentum Investing Engine are used in this strategy:

> Breakout

> Retracement for Pullback

> Trend Filter

> Ranking

> Relative Strength

> Market Trend Filter

Strategy details:

> Strategy Name: Mid-Small Cap (MIP-12 with SL)

> Universe: Nifty Mid-Small 400 Index

> Market Trend Filter: Nifty 500 20-EMA

> Performance period: 252

> Retracement: 50% from 52-week high

> Trend filter: 200-EMA

> Relative Momentum: Ratio 200-EMA

> Allocation: Reinvestment

> Ranking criteria: Volar

> Rebalance period: Monthly

> Number of stocks: 20

> Exit Rank: 40

> Stop-loss: 30%

You can copy this strategy into your basket as either a real or virtual strategy.
This strategy is meant to give you an idea of the possibilities — you should modify it according to your own approach.

You can customize the universe, allocation, and portfolio size based on your preferences.

Feel free to tweak the strategy parameters and backtest them using your selected universe and time period in RZone.

The default rebalance frequency is monthly, set to the 1st of each month. You can change this to a weekly frequency and select your preferred day.

Make sure to backtest the changes in RZone to gain confidence in your customized strategy.

 

 

Customer Support :  020-61923200,  [email protected]