Momentify User Manual

Investing Strategies

Users can click on +Investing Strategy to build their custom momentify strategy.

Investment Details

Parameter / Detail	Description
Strategy Type:	Users can select whether to build a virtual strategy or a real one.
Strategy Name:	User can name their custom strategy.
ETF Group Button:	Users can check this option if they are building their strategy on an ETF group that contains multiple ETFs based on the same underlying. If this option is selected, the engine will automatically take entry only in a single ETF of a particular underlying (even if multiple qualify).
Exchange & Group:	Exchange is by default NSE, and Group is the universe on which the user wishes to run their investing strategy. For example, it can be a broad market universe like Nifty 500, Nifty Small Cap 250; it can be sector indices like NSE Auto; it can be their Custom Groups or ETF groups.
Investment Type:	Users can select Lumpsum (strategy runs on a single lumpsum investment amount), Lumpsum + SIP (strategy starts with a lumpsum amount and then periodically adds capital in the form of SIPs), or SIP (strategy starts with the first installment of SIP and then continues with periodic addition of capital). For strategies with SIP, the amount of the SIP cannot be edited. However, SIP can be paused or users can change the number of installments in a particular strategy. For a lumpsum-only strategy, it is possible to add more capital after the 1st rebalance.
Auto Rebalance:	Users have an option to enable automatic rebalancing based on their strategy on the rebalance day. If users check this option, they need to provide the time at which they would prefer the engine to fire the orders. If auto-rebalance is selected and it’s a trading holiday on the rebalance day, auto rebalance will be attempted on the next trading day at the selected time. Users who do not opt for Auto Rebalance will receive a mail early in the morning on the rebalance day, which will take them to a rebalance basket based on the previous day’s EOD prices. Users can directly execute the basket the next day from this link or create a fresh basket in the morning and execute. (Note: for Auto Rebalance, the basket is created in real time).
Total Allocation:	Users who have selected Lumpsum or Lumpsum + SIP can see this option. Users need to input the capital that they wish to allocate to the particular strategy.
No. of Stocks:	Users can define the maximum number of stocks they would like to have in their portfolio. The allocated amount will be invested in them equally at the beginning of the strategy. Similarly, users who have opted for SIP will have their installments divided equally into the selected number of scrips.
Ranking Criteria:	Users can select the criteria on which they wish to rank the scrips in their universe, and the top-ranking scrips will be selected to form a portfolio of the user-defined number of scrips. Users can select among four criteria: Return Percentage: Scrips in the universe will be ranked based on the absolute returns they generated for the selected period/periods. Volar: Volar is Definedge’s proprietary scoring method which considers volatility-adjusted returns instead of absolute returns, ranking stocks with a smoother uptrend higher. Sharpe Returns: This method scores stocks on Returns/Standard Deviation and ranks stocks based on this ratio instead of absolute returns. Stocks with a lower Std Dev compared to their returns will score higher. RSI: Stocks are ranked based on the value of the RSI indicator for the selected period.
Exit Rank:	This is the rank threshold below which an existing stock will be removed from the portfolio. For example, a portfolio of 10 stocks is created with an exit rank of 20; during the next rebalance, the engine will rank all the stocks in the universe and exit the stocks from the portfolio whose rank is below the given threshold. In this example, stocks having a rank of 21 or more will be exited (whereas stocks having a rank higher than 10 but less than or equal to 20 will be retained), and the open slots will be filled by new top-ranked stocks.
Frequency:	Users have an option to select how often they wish to rebalance their portfolio. Users can select from Weekly, Bi-Weekly (once in 2 weeks), Monthly, and Quarterly. Aggressive investors can select a lower timeframe; however, that will lead to more churn.
Day of the Month/Week:	Users will get the option to decide the date on which they wish to rebalance if the “Monthly” option is selected in Frequency. Users will get the option to decide the day of the week on which they wish to rebalance if they select Weekly. For Bi-Weekly and Quarterly, the day on which the strategy is created is considered the first day, and from then, every 2 weeks or every month (as per the selection) will be considered for rebalance.
Market Protection:	Users can select the upper range of the limit orders fired by the engine for rebalance. For example, if 1% market protection is selected, sell orders will fire 1% below LTP during the scan and buy orders will be fired at 1% above LTP during the scan.
SIP Amount:	Users will have to check this box for Lumpsum + SIP or SIP strategies. Once selected, they will have to input the amount of each installment. (Note: this amount cannot be altered later).
No. of Installments:	Once users check the SIP Amount box, this field will be visible. Users can select the number of installments they wish to invest in the strategy. Users also have the option to select the “Perpetual” option, in which the SIP will keep going indefinitely until stopped or paused by the user. Users will have the option to “Pause” the SIP or change the number of installments later if they wish to do so.

Strategy Details

Parameter / Detail	Description
Market Trend Filter (MTF):	This acts as the main gate for the strategy. Users can configure the following: Chart Type: Users can select among the 5 provided chart types and their respective conditions. Filter: Users can select whether to exit all the stocks in the portfolio when MTF turns negative, keep all the stocks and stop rebalancing, or stop new entries and exit existing stocks as per the strategy. Index/RS: Users can select whether to apply filters to the Price chart of the selected instrument or a ratio chart of their choice. Scrip: For the Index filter, users can select to apply MTF on a broad market index or their respective sector/segment index. If users choose the RS filter, their conditions are applied on the ratio chart of 2 scrips — Scrip 1 is the numerator and Scrip 2 is the denominator. For example, users can use the Nifty 50/GS Composite ratio chart as their MTF. Chart Conditions: Users have the option to choose from EMA, Dsmart, or MAST. They can select one of these 3 indicators on either the Index chart or the RS chart (whichever was selected above) and can alter the period. For example, users can choose 55 EMA or 28 Dsmart.
Period in Days:	Users can select up to 4 periods and weight them equally or differently. Stocks will be ranked on this period as per the selected ranking criteria. If more than one period is selected, their scores will be multiplied by the weights to achieve a combined score and will be ranked accordingly. Default input for periods is 252, 120, 90, and 60. Users can check the boxes for how many periods they wish to combine and can also alter their values. For example, users can select the default 252 only as a single period and run their strategy, or can select all 4 periods’ checkboxes and enter custom values like 144, 89, 55, 34, etc. (Note: Period is in terms of trading days.)
Period Weight:	Just below Period in Days is the Period Weight option. Users can select how much weightage should be given to the ranking scores of their selected periods. The default value is 1, and if users have selected multiple periods, the default value for all will be 1. Users can alter these values for one or all of their selected periods. For example, they can weight 1, 1, 1, 2 for the 252, 120, 90, 60 day ranking scores.
Retracement:	Users can specify a criterion for a stock’s current position relative to its “Breakout” level (discussed in the next row), which the stock should meet to get selected within the portfolio along with other criteria. If users do not want to apply this filter, they can deselect the checkbox near the numeric value.
Breakout:	Users have 4 options here, viz. 52-Week High, 52-Week Low, All-Time High, and All-Time Low. Overall, users can create conditions like 20% within ATH or 40% above the 52-week low, etc., using the “Retracement” and “Breakout” conditions together.
Price Above/Price Below:	Users can filter their stock universe further based on LTP. Users can select not to enter stocks with a price above 5000 or a price below 50 rupees. For each condition, the user needs to check the required box. If both remain unchecked, this filter is not applied. (Note: One use case for this filter is for investors to remove stocks that will not fit within their investment amount when divided equally.)
Volume:	Users can filter stocks based on Average/Median Daily Volume traded in a particular stock, or Average/Median Daily Value traded in a particular stock. Here, “Value” means Volume × Price. (Note: By default, Average/Median is calculated for 20 periods.) This can help filter out illiquid stocks.
Chart Type:	Users can select their own custom Price and RS conditions as an additional filter. They need to select the chart type they wish to apply to the Price charts and RS charts. Only one chart type can be selected for both RS and Price charts. Users have the option to select from OHLC, Line Break, Kagi, P&F, and Renko. Based on the chart type selected, users will have to select the following plotting conditions: P&F: Box Size, Reversal Size, Close/High-Low. Renko: Brick Size, Close/High-Low. Kagi: Turnaround %. Line Break: Number of Lines.
Timeframe:	Users can select which timeframe they wish to use as input for their selected chart type. Users can select from Daily, Weekly, or Monthly timeframe charts. (Note: The same timeframe applies to RS charts as well.)
Entry Conditions:	These are the price conditions a stock must qualify for to be considered for the portfolio, along with other criteria. Users can select prebuilt conditions or create their own custom condition using System Builder.
Moving Average (Exponential):	Users can select or deselect EMA filters for their stocks. Users can select up to two EMA filters and can alter the values as well, for example, 150 and 50. This filter is applied on OHLC charts irrespective of what chart type is selected in the “Chart Type” option. The default Moving Average used is EMA.
Radar Fundamentals:	Along with multiple technical price and RS criteria, users have the option to filter stocks based on fundamental filters as well. Users can check the box below and choose from prebuilt or custom Radar filters (Radar is a fundamental analysis platform by Definedge). Users can implement filters like PE < 50, Sales Growth > 30%, etc. (Note: This filter is applied on the same universe that the user selected in the “Exchange & Group” section.)
Relative Strength:	Users can select this option to apply chart filters on the ratio chart of Stock/Denominator. Users can select a broader market index like Nifty 50, Nifty 500, or a sector-specific or segment-based index as the denominator. Ideally, the choice of denominator should be based on the universe selected to run the strategy.
Relative Strength System Builder:	Users can select chart conditions they wish to use as a filter on the ratio chart. (Note: The chart type, timeframe, and box value for the RS chart will be the same as what was selected previously.)
Exit Condition:	Users can define chart conditions on Price charts which, if triggered, will lead the engine to exit that particular stock position. For Manual Rebalance, stocks will be scanned for exit conditions at EOD, and users will receive an email early in the morning to execute the sell transaction. For Auto Rebalance, exit conditions are checked in real time, and the stock is exited during the day when conditions are met. (Note: If a stock is exited in the middle of a rebalance period, it is not replaced immediately with a new stock — entries happen only on the rebalance day.)
Stoploss/Target:	Users can specify a % Stoploss and % Target as exit criteria as well. Similar to exit conditions, stocks are scanned to check if they meet the Stoploss or Target criteria, and an exit here does not trigger a new entry. (These are checked individually for each stock and are not a portfolio-level stoploss or target.)
Remarks:	Users can filter a strategy’s orders and journal entries using the name they give in the Remarks section.

Trading Strategies

Users can click on +Trading Strategy to build a trading strategy predominantly using charts.

Trading Details

Parameter / Detail	Description
Strategy Name:	User can name their custom strategy.
Exchange & Group:	Exchange is by default NSE, and Group is the universe on which the user wishes to run their investing strategy. For example, it can be a broad market universe like Nifty 500, Nifty Small Cap 250; it can be sector indices like NSE Auto; it can be their Custom Groups or ETF groups.
Auto Rebalance:	Users can select the Auto Rebalance option, under which existing stocks will be scanned in real time for exit conditions and will be exited if the conditions are met. The engine will also scan for rank-based rebalance if the user selects that option. Only exits are taken in real time; entries are scanned for and taken only once a day, at the user-selected time.
Timer:	Users can decide the time during the day at which entry conditions should be scanned and trades fired if a condition qualifies.
Total Allocation:	Users can enter how much capital they wish to deploy for the particular trading strategy.
No. of Stocks:	Maximum number of positions the user wishes to hold in the particular strategy.
Rank Criteria:	If more stocks qualify for the entry criteria than there are available open slots, Rank Criteria is used to filter which stocks get the entry. Users can select from Returns, Volar, Sharpe Returns, and RSI as the scoring parameters to arrive at the ranking: Returns: Stocks are ranked on % return. Volar: Definedge’s proprietary score for volatility-adjusted returns. Sharpe Returns: Returns/Std Dev. RSI: Value of the RSI indicator for the selected period length.
Exit Rank:	This is the rank threshold below which an existing stock will be removed from the portfolio. For example, a portfolio of 10 stocks is created with an exit rank of 20; during the next rebalance, the engine will rank all the stocks in the universe and exit the stocks from the portfolio whose rank is below the given threshold. In this example, stocks having a rank of 21 or more will be exited (whereas stocks having a rank higher than 10 but less than or equal to 20 will be retained), and the open slots will be filled by new top-ranked stocks.
Position Size:	By default, the position sizing criteria is Fixed position sizing, i.e., the available capital will be divided equally across the available slots. If users wish to use other position sizing methods, they need to check the “Position Size” box and then click on the words “Position Size” — the user will then see 3 options: Fixed, Risk-Based, and ATR-Based. If Risk-Based is selected, users have to give their risk threshold in amount and their SL in percentage; this will be used to calculate how much quantity can be traded for a particular scrip. For example, if the risk amount is 10,000 and the stoploss is 5%, entries will be around 2 lakh per scrip. If ATR-Based is selected, users have to give the risk amount and ATR multiple, and positions will be calculated based on these parameters.
No. of Stocks per Day:	Users can select this option if they wish to limit the number of stocks entered on the same day. For example, if this option is checked and the input given is 2, the engine will take only 2 trades even if 5 slots are open and 5+ stocks qualify the entry criteria.
Rebalance Period:	Users have the option to select Rebalance as an additional exit criterion — if stocks fall out of the selected rank on the Rebalance day, they will be exited even if the chart exit condition is not met. Users can choose whether to rebalance weekly or monthly.
Market Protection:	Users can select the upper range of the limit orders fired by the engine for rebalance. For example, if 1% market protection is selected, sell orders will fire 1% below LTP during the scan and buy orders will be fired at 1% above LTP during the scan.

Strategy Details (Custom)

Parameter / Detail	Description
Market Trend Filter (MTF):	This acts as the main gate for the strategy. Users can configure the following: Chart Type: Users can select among the 5 provided chart types and their respective conditions. Filter: Users can select whether to (a) exit all positions, (b) exit based on the existing exit conditions and take no new entries, (c) exit based on a new exit condition and take no new entries, or (d) only change the exit condition. Index/RS: Users can select whether to apply filters to the Price chart of the selected instrument or a ratio chart of their choice. Scrip: For the Index filter, users can select to apply MTF on a broad market index or their respective sector/segment index. If users choose the RS filter, their conditions are applied on the ratio chart of 2 scrips — Scrip 1 is the numerator and Scrip 2 is the denominator. For example, users can use the Nifty 50/GS Composite ratio chart as their MTF. Chart Conditions: Users have the option to choose from EMA, Dsmart, or MAST. They can select one of these 3 indicators on either the Index chart or the RS chart (whichever was selected above) and can alter the period. For example, users can choose 55 EMA or 28 Dsmart. Exit Condition: Users can choose a different chart condition to exit when MTF turns negative. Stoploss/Target: Users also have the option to provide a new Stoploss and Target % for when MTF turns negative. X% Breadth: Users can choose X% Breadth as an MTF criterion along with Index or RS charts, where no new entries will be taken if the selected criterion is met. Users can select the universe on which to plot breadth (Nifty 50/Nifty 500), the value above which they wish to stop new entries, and/or a Breadth vs MA filter, where new entries will stop if the breadth indicator is below its 5 SMA.
Period in Days:	Users can select up to 4 periods and weight them equally or differently. Stocks will be ranked on this period as per the selected ranking criteria. If more than one period is selected, their scores will be multiplied by the weights to achieve a combined score and will be ranked accordingly. Default input for periods is 252, 120, 90, and 60. Users can check the boxes for how many periods they wish to combine and can also alter their values. For example, users can select the default 252 only as a single period and run their strategy, or can select all 4 periods’ checkboxes and enter custom values like 144, 89, 55, 34, etc. (Note: Period is in terms of trading days.)
Period Weight:	Just below Period in Days is the Period Weight option. Users can select how much weightage should be given to the ranking scores of their selected periods. The default value is 1, and if users have selected multiple periods, the default value for all will be 1. Users can alter these values for one or all of their selected periods. For example, they can weight 1, 1, 1, 2 for the 252, 120, 90, 60 day ranking scores.
Retracement:	Users can specify a criterion for a stock’s current position relative to its “Breakout” level (discussed in the next row), which the stock should meet to get selected within the portfolio along with other criteria. If users do not want to apply this filter, they can deselect the checkbox near the numeric value.
Breakout:	Users have 4 options here, viz. 52-Week High, 52-Week Low, All-Time High, and All-Time Low. Overall, users can create conditions like 20% within ATH or 40% above the 52-week low, etc., using the “Retracement” and “Breakout” conditions together.
Price Above/Price Below:	Users can filter their stock universe further based on LTP. Users can select not to enter stocks with a price above 5000 or a price below 50 rupees. For each condition, the user needs to check the required box. If both remain unchecked, this filter is not applied. (Note: One use case for this filter is for investors to remove stocks that will not fit within their investment amount when divided equally.)
Volume:	Users can filter stocks based on Average/Median Daily Volume traded in a particular stock, or Average/Median Daily Value traded in a particular stock. Here, “Value” means Volume × Price. (Note: By default, Average/Median is calculated for 20 periods.) This can help filter out illiquid stocks.
Moving Average (Exponential):	Users can select up to 3 EMAs as additional filters. Default values are 200, 50, and 20; however, users can select the number of EMAs they want and set their own custom lookback periods. If 3 EMAs are selected, the stock will have to close above all 3 EMAs to qualify. Irrespective of the chart type selected, the EMA filter is always applied on OHLC charts.
TMA Trend:	Users can check this box if they wish to have bullish alignment of their selected EMAs as an additional filter criterion. For this filter, all 3 EMA inputs are required. If this box is checked, the engine will filter only those stocks that have closed above all the selected EMAs and where all the selected EMAs are aligned, i.e., Price > MA1, MA1 > MA2, and MA2 > MA3.
Trend Quality:	Users can select the value of the Trend Quality indicator as a required threshold for a stock to qualify. If >50% is selected, only stocks that have closed positive for at least 50% of the days in the last 20 trading days will qualify.
Radar Fundamentals:	Along with multiple technical price and RS criteria, users have the option to filter stocks based on fundamental filters as well. Users can check the box below and choose from prebuilt or custom Radar filters (Radar is a fundamental analysis platform by Definedge). Users can implement filters like PE < 50, Sales Growth > 30%, etc. (Note: This filter is applied on the same universe that the user selected in the “Exchange & Group” section.)
Chart Type:	Users can select from 3 options: OHLC, Renko, or P&F. The same chart type will be used for both Price and RS charts. For P&F charts, users will have to choose Reversal Size and Close/High-Low; for Renko charts, users will have to choose Close/High-Low. These choices will remain constant for Price charts, Multi-timeframe charts, and RS charts.
Timeframe:	Users can select from 1 Min to Yearly timeframe for charts. However, entry happens only once a day — at the selected time during the day, the chart of the selected timeframe will be checked for entry criteria. (Note: Users who wish to trade in real time should use Algostra, which is Definedge’s dedicated algo trading platform.)
Entry Condition:	These are the price conditions a stock must qualify for to be considered for the portfolio, along with other criteria. Users can select prebuilt conditions or create their own custom condition using System Builder. For P&F and Renko, users will have to select their preferred box/brick value and whether they wish their conditions to be Running or Fresh — Fresh: the condition qualified today; Running: the condition qualified before today, but the chart is still in the same price pattern.
Multi-timeframe:	Users can check this box to get the option to add 2 additional chart filters. These filters can be applied on the same chart type only; however, users can select a higher timeframe or box value for these 2 additional filters.
Higher Timeframe 2/3:	Both these slots provide users with the facility to add more filters on the same or a higher timeframe/box value. For example, a user can select to trade DTB on a 1% chart and then add 2 filters — that the stock should also be in DTB on a 3% chart and should be in an X column on a 5% chart. Conditions on both Higher Timeframe slots are “Running” only.
Relative Strength:	Users can select this option to apply chart filters on the ratio chart of Stock/Denominator. Users can select a broader market index like Nifty 50, Nifty 500, or a sector-specific or segment-based index as the denominator. Ideally, the choice of denominator should be based on the universe selected to run the strategy.
Relative Strength System Builder:	Users can select chart conditions they wish to use as a filter on the ratio chart. (Note: The chart type, timeframe, and box value for the RS chart will be the same as what was selected previously.)
RS Box Size:	Users have the option to use a different box/brick value for RS charts compared to their Price charts. (Note: This option is only available for P&F and Renko charts. For all chart types, including OHLC, the timeframe of the RS chart remains the same as the timeframe of the primary chart condition.)
Exit Chart Type:	Users have the option to select a different chart type for the exit condition. Users can also choose different chart parameters like box/brick value, reversal size, Close/High-Low, etc., based on the selected chart type.
Selection Type:	Users can choose whether to exit based only on Price charts, or to exit if their condition is met on either Price or RS charts.
Exit Denominator:	Users can select a different denominator for Exit RS charts. For example, if Nifty 50 was selected as the denominator in the entry RS conditions, G-Sec Composite can be selected as the denominator for the Exit RS charts.
Exit Condition:	Users can define the chart conditions to be checked on the Price/RS chart as an exit criterion. For Auto Rebalance, exits are taken in real time, whereas for Manual Rebalance, exit conditions are checked at EOD and the user receives an email the next morning to exit the particular stock.
Stoploss/Target:	Users can specify a % Stoploss and % Target as exit criteria as well. Similar to exit conditions, stocks are scanned to check if they meet the Stoploss or Target criteria, and an exit here does not trigger a new entry. (These are checked individually for each stock and are not a portfolio-level stoploss or target.)
Remarks:	Users can filter a strategy’s orders and journal entries using the name they give in the Remarks section.

Strategy Details (Rzone)

Parameter / Detail	Description
Market Trend Filter (MTF):	This acts as the main gate for the strategy. Users can configure the following: Chart Type: Users can select among the 5 provided chart types and their respective conditions. Filter: Users can select whether to (a) exit all positions, (b) exit based on the existing exit conditions and take no new entries, (c) exit based on a new exit condition and take no new entries, or (d) only change the exit condition. Index/RS: Users can select whether to apply filters to the Price chart of the selected instrument or a ratio chart of their choice. Scrip: For the Index filter, users can select to apply MTF on a broad market index or their respective sector/segment index. If users choose the RS filter, their conditions are applied on the ratio chart of 2 scrips — Scrip 1 is the numerator and Scrip 2 is the denominator. For example, users can use the Nifty 50/GS Composite ratio chart as their MTF. Chart Conditions: Users have the option to choose from EMA, Dsmart, or MAST. They can select one of these 3 indicators on either the Index chart or the RS chart (whichever was selected above) and can alter the period. For example, users can choose 55 EMA or 28 Dsmart. Exit Condition: Users can choose a different chart condition to exit when MTF turns negative. Stoploss/Target: Users also have the option to provide a new Stoploss and Target % for when MTF turns negative. X% Breadth: Users can choose X% Breadth as an MTF criterion along with Index or RS charts, where no new entries will be taken if the selected criterion is met. Users can select the universe on which to plot breadth (Nifty 50/Nifty 500), the value above which they wish to stop new entries, and/or a Breadth vs MA filter, where new entries will stop if the breadth indicator is below its 5 SMA.
Period in Days:	Users can select up to 4 periods and weight them equally or differently. Stocks will be ranked on this period as per the selected ranking criteria. If more than one period is selected, their scores will be multiplied by the weights to achieve a combined score and will be ranked accordingly. Default input for periods is 252, 120, 90, and 60. Users can check the boxes for how many periods they wish to combine and can also alter their values. For example, users can select the default 252 only as a single period and run their strategy, or can select all 4 periods’ checkboxes and enter custom values like 144, 89, 55, 34, etc. (Note: Period is in terms of trading days.)
Period Weight:	Just below Period in Days is the Period Weight option. Users can select how much weightage should be given to the ranking scores of their selected periods. The default value is 1, and if users have selected multiple periods, the default value for all will be 1. Users can alter these values for one or all of their selected periods. For example, they can weight 1, 1, 1, 2 for the 252, 120, 90, 60 day ranking scores.
Retracement:	Users can specify a criterion for a stock’s current position relative to its “Breakout” level (discussed in the next row), which the stock should meet to get selected within the portfolio along with other criteria. If users do not want to apply this filter, they can deselect the checkbox near the numeric value.
Breakout:	Users have 4 options here, viz. 52-Week High, 52-Week Low, All-Time High, and All-Time Low. Overall, users can create conditions like 20% within ATH or 40% above the 52-week low, etc., using the “Retracement” and “Breakout” conditions together.
Price Above/Price Below:	Users can filter their stock universe further based on LTP. Users can select not to enter stocks with a price above 5000 or a price below 50 rupees. For each condition, the user needs to check the required box. If both remain unchecked, this filter is not applied. (Note: One use case for this filter is for investors to remove stocks that will not fit within their investment amount when divided equally.)
Volume:	Users can filter stocks based on Average/Median Daily Volume traded in a particular stock, or Average/Median Daily Value traded in a particular stock. Here, “Value” means Volume × Price. (Note: By default, Average/Median is calculated for 20 periods.) This can help filter out illiquid stocks.
Scanner List:	Users can select any scanner from Rzone that they wish to use to filter the stocks. Users can also combine scanners into a Master Scanner and then use it from the Scanner List to get a list of stocks filtered by multiple strategies in Rzone.
Strategy List:	Rzone provides an option for users to save specific scanners along with their filters. Users can select their preferred scanner from the Scanner List and their saved strategy from the Strategy List to filter the stocks.
Moving Average (Exponential):	Users can select up to 3 EMAs as additional filters. Default values are 200, 50, and 20; however, users can select the number of EMAs they want and set their own custom lookback periods. If 3 EMAs are selected, the stock will have to close above all 3 EMAs to qualify. Irrespective of the chart type selected, the EMA filter is always applied on OHLC charts.
TMA Trend:	Users can check this box if they wish to have bullish alignment of their selected EMAs as an additional filter criterion. For this filter, all 3 EMA inputs are required. If this box is checked, the engine will filter only those stocks that have closed above all the selected EMAs and where all the selected EMAs are aligned, i.e., Price > MA1, MA1 > MA2, and MA2 > MA3.
Chart Type:	Users can select from 3 options: OHLC, Renko, or P&F. The same chart type will be used for both Price and RS charts. For P&F charts, users will have to choose Reversal Size and Close/High-Low; for Renko charts, users will have to choose Close/High-Low. These choices will remain constant for Price charts, Multi-timeframe charts, and RS charts.
Timeframe:	Users can select from 1 Min to Yearly timeframe for charts. However, entry happens only once a day — at the selected time during the day, the chart of the selected timeframe will be checked for entry criteria. (Note: Users who wish to trade in real time should use Algostra, which is Definedge’s dedicated algo trading platform.)
Relative Strength:	Users can select this option to apply chart filters on the ratio chart of Stock/Denominator. Users can select a broader market index like Nifty 50, Nifty 500, or a sector-specific or segment-based index as the denominator. Ideally, the choice of denominator should be based on the universe selected to run the strategy.
Relative Strength System Builder:	Users can select chart conditions they wish to use as a filter on the ratio chart. (Note: The chart type, timeframe, and box value for the RS chart will be the same as what was selected previously.)
RS Box Size:	Users have the option to use a different box/brick value for RS charts compared to their Price charts. (Note: This option is only available for P&F and Renko charts. For all chart types, including OHLC, the timeframe of the RS chart remains the same as the timeframe of the primary chart condition.)
Exit Chart Type:	Users have the option to select a different chart type for the exit condition. Users can also choose different chart parameters like box/brick value, reversal size, Close/High-Low, etc., based on the selected chart type.
Selection Type:	Users can choose whether to exit based only on Price charts, or to exit if their condition is met on either Price or RS charts.
Exit Denominator:	Users can select a different denominator for Exit RS charts. For example, if Nifty 50 was selected as the denominator in the entry RS conditions, G-Sec Composite can be selected as the denominator for the Exit RS charts.
Exit Condition:	Users can define the chart conditions to be checked on the Price/RS chart as an exit criterion. For Auto Rebalance, exits are taken in real time, whereas for Manual Rebalance, exit conditions are checked at EOD and the user receives an email the next morning to exit the particular stock.
Stoploss/Target:	Users can specify a % Stoploss and % Target as exit criteria as well. Similar to exit conditions, stocks are scanned to check if they meet the Stoploss or Target criteria, and an exit here does not trigger a new entry. (These are checked individually for each stock and are not a portfolio-level stoploss or target.)
Remarks:	Users can filter a strategy’s orders and journal entries using the name they give in the Remarks section.

Mutual Fund Strategy

Users can click on +MF Strategy to build a Momentum SIP engine. (Note: Unlike Investing and Trading strategies, the MF Momentify engine does not exit existing constituents on rebalance — it just adds a new basket.)

Investment Details

Parameter / Detail	Description
Strategy Name:	User can name their custom strategy.
Risk Type:	Users can select among 3 types: Aggressive, Moderate, and Conservative. Default allocation to Equity, Hybrid, and Debt funds will change accordingly. However, users can still alter the allocation to each type of Mutual Fund manually, irrespective of the risk type they select.
Total Allocation:	Users can select the total allocation across MFs; however, this amount will be treated as the SIP installment on the rebalance day and not the final total amount.
Rank Criteria:	If more stocks qualify for the entry criteria than there are available open slots, Rank Criteria is used to filter which stocks get the entry. Users can select from Returns, Volar, Sharpe Returns, and RSI as the scoring parameters to arrive at the ranking: Returns: Stocks are ranked on % return. Volar: Definedge’s proprietary score for volatility-adjusted returns. Sharpe Returns: Returns/Std Dev. RSI: Value of the RSI indicator for the selected period length.
Re-Calculation Period:	Users can understand this as more of an SIP frequency. They can select either Monthly or Quarterly.
Day of the Month:	Users can select the date on which they wish to generate a new basket, every month or quarter.
Equity:	Users can select how much % of their current basket (investment amount) they wish to invest in Equity Funds, and within Equity, how many different funds they wish to hold. The Equity portion of their capital will then be equally divided into this number of funds. (Note: This can be altered to any % between 0-100, irrespective of what Risk Type had been selected.)
Hybrid:	Users can select how much % of their current basket (investment amount) they wish to invest in Hybrid Funds, and within Hybrid, how many different funds they wish to hold. The Hybrid portion of their capital will then be equally divided into this number of funds. (Note: This can be altered to any % between 0-100, irrespective of what Risk Type had been selected.)
Debt:	Users can select how much % of their current basket (investment amount) they wish to invest in Debt Funds, and within Debt, how many different funds they wish to hold. The Debt portion of their capital will then be equally divided into this number of funds. (Note: This can be altered to any % between 0-100, irrespective of what Risk Type had been selected.)
Unique Category:	If users check this box, the engine will invest each proportion into different categories within each major class. For example, if users have selected 5 funds for Equity, the engine will select the top-ranked funds from different categories like Flexi Cap, Mid Cap, Pharma, etc. (top-ranked, but different sub-categories). If this box is left unchecked, it is possible that all the funds in Equity are from the same sub-category, like “Small-Cap.”

Strategy Details

Parameter / Detail	Description
Period in Days:	Users can select up to 4 periods and weight them equally or differently. Stocks will be ranked on this period as per the selected ranking criteria. If more than one period is selected, their scores will be multiplied by the weights to achieve a combined score and will be ranked accordingly. Default input for periods is 252, 120, 90, and 60. Users can check the boxes for how many periods they wish to combine and can also alter their values. For example, users can select the default 252 only as a single period and run their strategy, or can select all 4 periods’ checkboxes and enter custom values like 144, 89, 55, 34, etc. (Note: Period is in terms of trading days.)
Period Weight:	Just below Period in Days is the Period Weight option. Users can select how much weightage should be given to the ranking scores of their selected periods. The default value is 1, and if users have selected multiple periods, the default value for all will be 1. Users can alter these values for one or all of their selected periods. For example, they can weight 1, 1, 1, 2 for the 252, 120, 90, 60 day ranking scores.
Retracement:	Users can specify a criterion for a stock’s current position relative to its “Breakout” level (discussed in the next row), which the stock should meet to get selected within the portfolio along with other criteria. If users do not want to apply this filter, they can deselect the checkbox near the numeric value.
Breakout:	Users have 4 options here, viz. 52-Week High, 52-Week Low, All-Time High, and All-Time Low. Overall, users can create conditions like 20% within ATH or 40% above the 52-week low, etc., using the “Retracement” and “Breakout” conditions together.
Min. Investment Amt. Below:	Users can check this box to filter out MF schemes with a minimum investment above a certain threshold. For example, users can filter out MF schemes that need a minimum investment of Rs. 5000.
AUM in Rs (Cr):	Users can filter MF schemes based on their assets under management. Users have the option to select MF schemes based on their AUM, either above or below a certain threshold.
Chart Type:	Users can select their own custom Price and RS conditions as an additional filter. They need to select the chart type they wish to apply to the Price charts and RS charts. Only one chart type can be selected for both RS and Price charts. Users have the option to select from OHLC, Line Break, Kagi, P&F, and Renko. Based on the chart type selected, users will have to select the following plotting conditions: P&F: Box Size, Reversal Size, Close/High-Low. Renko: Brick Size, Close/High-Low. Kagi: Turnaround %. Line Break: Number of Lines.
Timeframe:	Users can select which timeframe they wish to use as input for their selected chart type. Users can select from Daily, Weekly, or Monthly timeframe charts. (Note: The same timeframe applies to RS charts as well.)
Entry Details:	These are the price conditions a stock must qualify for to be considered for the portfolio, along with other criteria. Users can select prebuilt conditions or create their own custom condition using System Builder.
Moving Average (Exponential):	Users can select or deselect EMA filters for their stocks. Users can select up to two EMA filters and can alter the values as well, for example, 150 and 50. This filter is applied on OHLC charts irrespective of what chart type is selected in the “Chart Type” option. The default Moving Average used is EMA.
Relative Strength:	Users can select this option to apply chart filters on the ratio chart of Stock/Denominator. Users can select a broader market index like Nifty 50, Nifty 500, or a sector-specific or segment-based index as the denominator. Ideally, the choice of denominator should be based on the universe selected to run the strategy.
Relative Strength System Builder:	Users can select chart conditions they wish to use as a filter on the ratio chart. (Note: The chart type, timeframe, and box value for the RS chart will be the same as what was selected previously.)

Scanner Filter

Parameter / Detail	Description
Turnover Ratio:	How much of the portfolio the fund manager churns in a year. For example, 20% means very buy-and-hold; 150% means the whole portfolio was flipped 1.5 times.
Expense Ratio:	The annual fee charged as a % of your money, deducted daily from the NAV. A lower Expense Ratio is generally better.
Beta:	How much a fund moves as compared to its benchmark? For example, a beta of 1 means that the scheme moves almost equal to the benchmark. Less than 1 is lower volatility, and more than 1 is higher volatility compared to the benchmark.
Sharpe Ratio:	This can be understood as Returns/Standard Deviation, or returns earned per unit of total risk taken (measured in volatility). Generally, the higher, the better.
Treynor Ratio:	Same as the Sharpe Ratio, except it uses Beta as the denominator instead of Standard Deviation — returns per unit of market risk instead of returns per unit of volatility. Generally, the higher, the better.
Alpha:	It measures how much more return the fund generated than its benchmark. A positive number means an outperforming fund.
Standard Deviation:	It measures the NAV’s volatility — a higher Standard Deviation means a more volatile fund, and vice versa.
Sortino Ratio:	Similar to the Sharpe Ratio, except unlike the Sharpe Ratio, which uses overall volatility, the Sortino Ratio uses only downside volatility to compare returns. Generally, a more useful metric than the Sharpe Ratio.
Past Returns:	Users can filter MF schemes based on the returns generated over the past 1, 3, or 5 years.
(Note: 1. For all of the above metrics, users can select values “equal to,” “above,” or “below” a certain value. 2. Users should understand that these ratios behave differently across different categories of funds and may not be comparable across Equity, Hybrid, and Debt.)

Product Updates

Utilities

Concepts

Momentify User Manual

Momentum Library

Momentify User Manual

Investing Strategies

Trading Strategies

Mutual Fund Strategy