Capitalmind Premium: Momentum Portfolio 2.1

The Momentum Portfolio

The New Momentum Portfolio consists of 30 stocks that are selected using our new DIY Toolkit on Snap (See video) and Snap Outliers. Read about how this strategy came around.

The idea is to have 30 stocks which will be only-long, and we replace them once a month with following rules.

• Thirty stocks, all based on price momentum.

• Love the all time highs, don’t bother with lows, focus on graphs trending up and right.

• Trade once a month unless a stock shows major signs of deterioration (in which case you exit, but wait till the next month to add new positions) Target the first monday of the month for the rebalance.

• If there are no opportunities it’s okay to be partly in cash.

• Look for liquidity – prefer stocks that trade 3+ cr. per day on average.

• Start equal weighted but let the winners become bigger while losers are evicted (don’t cut winning positions to get them back to equal weighted)

• The hedge: We would use Nifty options to protect against the downside in the short term.

Below are our posts on entry and exits in Momentum Portfolio

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