Hi All,
Although I have been around for a while on this forum, I haven’t actively contributed/participated and in fact this is the first time I am initiating a thread.
About Me → I trade for a living – am a full-time day trader. I also have started a Mutual fund advisory service. Prior to trading, spent 17 years in the IT industry during which I got into the markets in 2013. Used to buy/sell stocks purely on the basis of fundamental analysis. Liquidated everything in 2018-2019 to close out my home loan…post-that, I quit the IT industry to become a full-time trader. Now, its pretty much everything in mutual funds ( that I pledge to get the required margin for intraday trading ).
So while this being in place, I got interested in Momentum investing sometime last year. Over the last few months, I spent a lot of my free time to write backtesting programs to try and close on a framework. Idea was to drill down to a strategy that has the combination of optimal returns and controlled drawdowns. Just last week, I did manage to close on this and have initiated a portfolio for myself.
This portfolio has been initiated just this week so nothing to report on its performance. This is purely price-based at the moment. Going forward, want to add a couple of filters from a fundamental standpoint as well but havent yet been able to close on the same. Kicked off the 20-stock portfolio nevertheless. Universe I have chosen is Nifty 500 and I essentially look at 6-12 month returns to rank the stocks.
From a timing standpoint, this is probably a bad time for momentum investing considering the run-up we have had but then I also thought the next few months will test out the resilience of the portfolio. Lets see how it goes.
Will be happy to get more insights on Momentum style if there are any practitioners here.
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