After reviewing mutual fund data, I got nothing special. My thesis that the recently added stocks(for the first time) might perform better than the already added stocks was broken.
I analysed the small caps fund mostly and the mid size allocation performed better, though there were peaks in returns across all sizes of allocation.
Therefore, it is just a good medium for knowing the stocks ideas till it gives me more data.
I also tried mixing it with SOIC technical indicators but nothing substantial was concluded.
V-stop brings the objectivity in exiting the positions that we don’t want to hold for the long term. Therefore, I after going through the course, only buy the stocks whose vstop is positive.
Few implementation detail of vstop
On monthly candles, it takes the certain date of the month and checks whether that price is below the lower band(green band) to trigger the sell signal.
Few problems that I found with vstop →
1.Even if in month for some days if it would crossed the lower line(calculated on monthly candles) and would have triggered sell signal, it would not show, as tradingview checks the vstop signal at the start of the month.
2. In a month the loss can be more than 20 percent before the sell signal is triggered at the start of the month on tradingview, even if the lower line was crossed(sell signal was triggered) a lot earlier if the date on which the monthy vstop is calculated is different.
Therefore what I propose is that we should calculate the vstop band lines at the monthy level but check the sell signal by comparing daily closing price.
Though SOIC indicator seems to work for most of the stocks in the indian market in its vanilla form.
As per SOIC course, we should not use vstop based exit for long term holdings(10 years or more).
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