Hi, Thanks for the post. Below are my replies
1.Percentage of portfolio: The strategy is more like coattail trading the momentum generated in particular stock when such investor name is disclosed in filing. The holding period will be just few days, if we see the distribution plotted at right in the sheet, my assumption is 3 day period maybe having best expectancy of 1.44% for 3 days
2.Disclosure rules: That is why I tried to take typical small/mid caps with market cap <5000 crores.
3.Very good point. That is why the aim is to trade the initial excitement/momentum caused when such investors invest in the companies. I do not intend to “invest” based on their investments.
4.I feel we do not need to worry about it as we are purely trading it and not investing.
5.True. Here strict loss controls are necessary to follow this strategy with position sizing.
Thanks!
| Subscribe To Our Free Newsletter |
