Momentum Portfolio (BORS) for week of 11th January 2020

Disclaimer: This post and all related posts on Stock Selection are purely academic in nature and are not to be executed as buy or sell decision. For stock market related actions, do consult a SEBI registered advisor. I am not a registered SEBI advisor and like I said earlier, this post is a merely for educational purposes. I am a Software professional and playing around with Data and finding patterns in them interests me.

In my last post I discussed a Momentum driven stock selection strategy. I have a momentum portfolio I have been tracking for education purposes and will share the stocks selected here every week. I will also share performance metrics of this algorithm regularly. I call this algorithm BORS (Breakout with Relative Strength) and while the core of the selection methodology is similar, here I am mostly interested in stocks which are breaking out, while also outperforming Nifty 200 index. My stock selection universe for BORS is Nifty 500.

The way to visualise this portfolio is through an equal weight allocation.

  • We will buy stocks worth 1,50,000 Rupees. (this is the minimum amount required for 1 Lot of this portfolio)
  • As this is a 20 stock portfolio and no stock should have more than 5% allocation, therefore we will limit max amount allocatable per stock to 7,500 Rupees.
  • Every Friday end of day we will rebalance this portfolio and as part of that process some new stocks will enter and some existing stocks which lose their ranks will move out of the portfolio.

Below are the stocks with relevant quantities that we are buying in one lot. One thing to note here is that after this entire deployment is done, we will have around 12500 Rupees in cash. For tracking purposes, I will be keeping that cash in LIQUIDBEES.

UPDATE 11th January 2020 : HFCL has got printed as HPCL below. Please read that stock as HFCL

For the purposes of tracking, I will use the closing price of the stock at 9:25 am on Monday as the price at which the transaction would have happened.

Disclaimer: This post and all related posts on Stock Selection are purely academic in nature and are not to be executed as buy or sell decision. For stock market related actions, do consult a SEBI registered advisor. I am not a registered SEBI advisor and like I said earlier, this post is a merely for educational purposes. I am a Software professional and playing around with Data and finding patterns in them interests me.

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