Systematic Equity Investment Portfolio Performance Tracking

ncube

Well-Known Member
#1
The idea behind starting this thread is to show how a systematic equity investment portfolio performs over a period of time. I believe showing the progress live will help new traders gain confidence in following their strategy even in adverse markets and give them an idea of how a diversified equity portfolio executed on a daily timeframe will behave over a period of time. The strategy uses combination factors of Momentum & Growth along with strict MM rules. I am running this strategy live in one of my Zerodha accounts. I plan to post only the portfolio performance charts on a monthly basis and will try to answer queries on systematic trading, MM and psychology. I will not be showing the stocks that I own nor will recommend any. The portfolio size is in low 8 digits and at a time there would be upto 30 stocks in the portfolio. Lets see how this experiment works out, all are welcome to join this journey!!!
 
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DanPSup

Hedge Strategy Trader in Options and Futures
#3
Sorry to disrupt you, but is it possible for you to find a way to post your analyzing pictures in a way so that they are also seen a bit bigger. I know I can zoom in the screen, but if you post your pictures with an official link, then we just can click on it and see it in a bigger picture more detailed. Hope you do not mind about my comment and thanks to start this thread. :up:
 

ncube

Well-Known Member
#4
Sorry to disrupt you, but is it possible for you to find a way to post your analyzing pictures in a way so that they are also seen a bit bigger. I know I can zoom in the screen, but if you post your pictures with an official link, then we just can click on it and see it in a bigger picture more detailed. Hope you do not mind about my comment and thanks to start this thread. :up:
There is some problem with my graphics driver, it is giving me a resolution of 1020x768, I have tried to split the image into 3 parts. Please check if its ok.
 

DanPSup

Hedge Strategy Trader in Options and Futures
#5
There is some problem with my graphics driver, it is giving me a resolution of 1020x768, I have tried to split the image into 3 parts. Please check if its ok.
Yep, looks much better now, at least on my side. Thank you :)):up:
 

ncube

Well-Known Member
#6
Its normal to doubt our strategy when the market is in panic mode and most make the mistake of going with the herd by either close all the positions, stop their strategy, try to adjust the rules or simple start looking for a better strategy as it is tempting to see all the profits being made by expert traders on social media.

Important point to understand is that there is no strategy that will work all the time in market. If one keeps system jumping based on market conditions it will never work, timing the market is very difficult. Hence one should stick to his tested strategy at all time and have the confidence that over a period of time the strategy will work out in his favour.

One may ask how to maintain confidence in our strategy and be sure that the edge is not lost? To have this confidence our strategy should be based on 3 key aspects:

1. Understanding the core reason as to why our strategy works, i.e what is the market anomaly we are exploiting. This will help us realise the favourable and unfavourable market conditions for our strategy.
2. Knowing what was the max historical DD for our strategy. This will help us know where our strategy is at current level.
3. Having an automatic clear MM & exit rule as the strategy approaches the Max historical DD.

I will explain this by taking my portfolio as an example,
1. My strategy is based on momentum in Growth stocks and those which are in long term uptrend. Hence it is very clear that my strategy will perform when the markets are going up and I should accept the fact that when the markets are down the strategy will perform badly.
2.If you observe it is currently at a DD of about 6% from the peak, this is not even close to the 2019 DD of 11% and the max 30% in 2008. So I have a long way to go.
3.As the markets continue to go down, there will be less and less growth stocks which will show upward momentum and hence there is an automatic scale out rule inbuilt into the strategy.

These above 3 points give me the confidence to stick with my strategy as I know that it will systematically take me out of the market when the situation arises. In the coming days I will try to post how I am managing my portfolio as the market dynamics changes.

As of now I am fully invested and there are 30 stocks in my portfolio. Also there are quite a few quality growth stocks which are still holding compared to peers. I plan to re-balance my portfolio on Monday by replacing few stocks with new stocks which are showing momentum in current market conditions. I will maintain full investment status for next week.

My portfolio status as of today:
pf.png
 
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#7
Its normal to doubt our strategy when the market is in panic mode and most make the mistake of going with the herd by either close all the positions, stop their strategy, try to adjust the rules or simple start looking for a better strategy as it is tempting to see all the profits being made by expert traders on social media.

Important point to understand is that there is no strategy that will work all the time in market. If one keeps system jumping based on market conditions it will never work, timing the market is very difficult. Hence one should stick to his tested strategy at all time and have the confidence that over a period of time the strategy will work out in his favour.

One may ask how to maintain confidence in our strategy and be sure that the edge is not lost? To have this confidence our strategy should be based on 3 key aspects:

1. Understanding the core reason as to why our strategy works, i.e what is the market anomaly we are exploiting. This will help us realise the favourable and unfavourable market conditions for our strategy.
2. Knowing what was the max historical DD for our strategy. This will help us know where our strategy is at current level.
3. Having an automatic clear MM & exit rule as the strategy approaches the Max historical DD.

I will explain this by taking my portfolio as an example,
1. My strategy is based on momentum in Growth stocks and those which are in long term uptrend. Hence it is very clear that my strategy will perform when the markets are going up and I should accept the fact that when the markets are down the strategy will perform badly.
2.If you observe it is currently at a DD of about 6% from the peak, this is not even close to the 2019 DD of 11% and the max 30% in 2008. So I have a long way to go.
3.As the markets continue to go down, there will be less and less growth stocks which will show upward momentum and hence there is an automatic scale out rule inbuilt into the strategy.

These above 3 points give me the confidence to stick with my strategy as I know that it will systematically take me out of the market when the situation arises. In the coming days I will try to post how I am managing my portfolio as the market dynamics changes.

As of now I am fully invested and there are 30 stocks in my portfolio. Also there are quite a few quality growth stocks which are still holding compared to peers. I plan to re-balance my portfolio on Monday by replacing few stocks with new stocks which are showing momentum in current market conditions. I will maintain full investment status for next week.

My portfolio status as of today:
Good Job. Might as have put the full names.Here you go sample.:DD

DMART-1878
BergerPaint -503
Bata-1763
MCX-1337.5
 

DanPSup

Hedge Strategy Trader in Options and Futures
#8
Its normal to doubt our strategy when the market is in panic mode and most make the mistake of going with the herd by either close all the positions, stop their strategy, try to adjust the rules or simple start looking for a better strategy as it is tempting to see all the profits being made by expert traders on social media.

Important point to understand is that there is no strategy that will work all the time in market. If one keeps system jumping based on market conditions it will never work, timing the market is very difficult. Hence one should stick to his tested strategy at all time and have the confidence that over a period of time the strategy will work out in his favour.

One may ask how to maintain confidence in our strategy and be sure that the edge is not lost? To have this confidence our strategy should be based on 3 key aspects:

1. Understanding the core reason as to why our strategy works, i.e what is the market anomaly we are exploiting. This will help us realise the favourable and unfavourable market conditions for our strategy.
2. Knowing what was the max historical DD for our strategy. This will help us know where our strategy is at current level.
3. Having an automatic clear MM & exit rule as the strategy approaches the Max historical DD.

I will explain this by taking my portfolio as an example,
1. My strategy is based on momentum in Growth stocks and those which are in long term uptrend. Hence it is very clear that my strategy will perform when the markets are going up and I should accept the fact that when the markets are down the strategy will perform badly.
2.If you observe it is currently at a DD of about 6% from the peak, this is not even close to the 2019 DD of 11% and the max 30% in 2008. So I have a long way to go.
3.As the markets continue to go down, there will be less and less growth stocks which will show upward momentum and hence there is an automatic scale out rule inbuilt into the strategy.

These above 3 points give me the confidence to stick with my strategy as I know that it will systematically take me out of the market when the situation arises. In the coming days I will try to post how I am managing my portfolio as the market dynamics changes.

As of now I am fully invested and there are 30 stocks in my portfolio. Also there are quite a few quality growth stocks which are still holding compared to peers. I plan to re-balance my portfolio on Monday by replacing few stocks with new stocks which are showing momentum in current market conditions. I will maintain full investment status for next week.

My portfolio status as of today:
View attachment 40361
Dear buddy

Why not posting the symbols of the shares do you like to trade?
 

ncube

Well-Known Member
#9
Good Job. Might as have put the full names.Here you go sample.:DD

DMART-1878
BergerPaint -503
Bata-1763
MCX-1337.5
Dear buddy

Why not posting the symbols of the shares do you like to trade?
I might have put the names but the intention is just to show how the portfolio looks like when in drawdown and I dont want anyone to blindly follow me. If I show the stock names then it also becomes my responsibility to show when I sell those shares on time which is not in my control as it is all mechanical. Further this is just one on my core strategies that I am running in one of the zerodha accounts and hence my risk taking ability would be completely different from others. What I want people to learn through this experiment is that the road is not always rosy and one need to have strong confidence in their tested strategies and stick to it during both good and bad times. Also this is a good opportunity for me to document my trading journey and show the concepts of Growth investing as explained by ST da and others in this forum looks like when implemented and traded live as a portfolio.

Further I want to give a disclaimer that though I am not a big trader yet, I have about 6 trading accounts (Zerodha-4 & ICICI-2) with decent capital allocation and hence overall my portfolio of portfolio returns will not face much drawdown. Here I am just showing the performance of Growth momentum strategy, however I run complementary non-correlated strategies in other accounts hence it is not possible for me to guide anyone the stock selection and the strategy principles as a whole as I do not worry about any single stocks and do not run any strategy in isolation. But I am confident that each strategy on its own over time will give positive returns.

For example this is how my best performing strategy has worked in the last few months which is due to its smaller size and uses signals from the Growth momentum Strategy and very volatile.

contra.png
 
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VJAY

Well-Known Member
#10
Dear ncube,
Your every thread is great learning for any type traders.....looking forward for new learning from this thread too...Thanks for taking time to sharing your knowledge here with us...
 

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