All AccuTrade Strategies are based on the findings of our report, “Does Mean Reversion work on Indian Markets? A Quantitative Review”. We have high levels of cash in the portfolios and deployed only when there is an apparent “edge”. These Accutrade strategies have delivered the most consistent returns with the least drawdowns over a number of years on a lookback basis. As we have seen in our study that the more the stock is oversold, the more likely it will bounce. With our strategies we want to take advantage of those few times when the fear is at the highest in the stock & people are scrambling for exit at any price. This creates short term in efficiencies and opportunities for short term gains when the stock snaps back to its original trend. As Warren Buffet says, “Be fearful when everybody’s greedy and be greedy when everyone’s fearful”. The strategy is based on the same principle but on a shorter time frame. You will see below the results which have proven this concept over and over again.
All AccuTrade strategies are developed keeping in mind the following goals;
- To best utilize the fear factor in stock prices to our advantage. When everybody’s afraid they sell the stocks out of preservation of capital or pure panic. This is where stocks become mispriced and opportunities for short term gain arise. You can check out the simulated performance of the strategies to see how nicely this behavior has played out over long period of time.
- To be out of markets most of the time & still beat the benchmark indices. All our strategies exposure, i.e. the number of days the systems are invested in markets is low in the range of 20-40%. That’s because we wait for the opportunities to come to us and not chase them.
- To have a smooth and consistent portfolio growth.
Check out the following statistics of our strategies. Please contact us for detailed information about the strategies & plans.
|STATISTICS||AccuTrade Alpha||BNF PullBack||NIFTY IT VIX||Buy&Hold (NIFTY)|
|Net Profit %||1276.91%||824.36%||2239.47%||76.79%|
|Annual Return %||26.91%||22.39%||33.17%||5.31%|
|Avg. Profit/Loss %||1.55%||11.57%||15.41%||76.79%|
|Avg. Bars Held||2.75||4.38||4.46||2723|
|Winners||604 (68.71 %)||101 (87.83 %)||135 (92.47 %)||1 (100.00 %)|
|Losers||275 (31.29 %)||14 (12.17 %)||11 (7.53 %)||0 (0.00 %)|
|Max. system % drawdown||-20.56%||-42.92%||-55.07%||-59.86%|
|Sharpe Ratio of trades||2.87||5.25||5.96||N/A|
We follow a strict crieteria to filter out the stocks to trade.
- We only trade stocks on which derivatives are available. Our main reasons are to avoid circuit filters on individual stocks and quality of the stocks.
- The stock must have average traded volume of more than a million shares a day over the last 21 days. This rule ensures that we are trading highly liquid stocks.
- The stock must be above 200 SMA to qualify. 200 SMA ensures that we are trading along with the trend.
- Proprietory entry crieteria to enter the stock.
- Dynamic exit.
- Maximum position size could differ on a client to client basis but ideally it is maximum of 5 positions per portfolio per strategy.
- Dynamic circuit filter on the strategies to avoid large drawdowns.
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HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEYARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
THE INFORMATION AND ANALYSIS ON THIS WEBSITE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. NOTHING HEREIN SHOULD BE INTERPRETED AS PERSONALIZED INVESTMENT ADVICE. UNDER NO CIRCUMSTANCES DOES THIS INFORMATION REPRESENT A RECOMMENDATION TO BUY, SELL OR HOLD ANY SECURITY. NONE OF THE INFORMATION ON THIS WEBSITE IS GUARANTEED TO BE CORRECT, AND ANYTHING WRITTEN HERE SHOULD BE SUBJECT TO INDEPENDENT VERIFICATION. YOU AND YOU ALONE, ARE SOLELY RESPONSIBLE FOR ANY INVESTMENT DECISIONS YOU MAKE. THE IDEAS AND STRATEGIES SHOULD NEVER BE USED WITHOUT FIRST ASSESSING YOUR OWN PERSONAL AND FINANCIAL SITUATION, OR WITHOUT CONSULTING A FINANCIAL PROFESSIONAL. OUR THOUGHTS AND OPINIONS WILL ALSO CHANGE FROM TIME TO TIME AS WE LEARN AND ACCUMULATE MORE KNOWLEDGE.