Nifty Bees Buying Strategy based on weekly RSI

Nifty Bees Buying Strategy

Putting up an accumulation strategy of accumulating NiftyBees based on a Weekly RSI.

1. On Every Friday Closing, buy Nifty Bees if Weekly RSI is below a benchmark (say 60). 2. 1 RSI equivalent 100 Rs. So if WRSI is 55,then buy (60-55 =5 *100 =500 Rs ) worth of NiftyBees.

3. If W RSI > 60, no Nifty Bees are bought for that week. Simple. That is it.

Now see the Strategy Result for different Weekly RSIs since the Nifty Bees started in Jan 2002 - 1048 weeks since have gone.

Col A - What if a strategy of accumulating below W RSI 40 or 45 or 50 and so on. Col B - The total nos of weeks it has remained below the Strategy chosen. e.g. Nifty has stayed below W RSI < 40, 99 times since Jan 2002. Means we accumulated NiftyBees for only 99 Times since then.

Col C - It Represent the (%) of Weeks, we accumulated the Nifty Bees from these 1048 weeks

Col D - Nos. of Nifty Bees we accumulated since Jan 2002

Col E - Total Amount Invested Since Jan 2002

Col F - Current Value of the accumulated Nifty Bees

Col G - XIRR of our Strategy

Col H - XIRR - If we accumulated 1 Nifty Bee every Friday Closing Basis since Jan 2002

Observations 1. The strategy beats a weekly SIP accumulation by a good 2%+. 2. Whenever Nifty W RSI goes below 40, it is the best time to accumulate Nifty Bees.

3. Alternatively, one can pursue a W RSI< 55 and increase the accumulation by 50% for every 5 points drop in W RSI. This way you accumulate more Bees at the lowest RSIs.

Whilst this is on closing price, slippages, brokerages & other costs etc might affect the returns.

The strategy was well discussed by @bankniftydoctor in many forums. I have attempted to give a back test results to his theory. I personally used to follow the W RSI<60 since read John Bogle in 2018 as part of passive investment.

Thank You @prameshp1 for sharing this strategy. If you like it please retweet below thread

https://twitter.com/prameshp1/status/1501978527633395712

Consult your Financial Advisor before making equity investments

Comments

How to bounce back from losses in trading?

Have you started trading recently? You may have seen some profits and then you start making losses. To recover the losses, you fight with the market and in the process, you encounter more loss, and lose your confidence. Many traders initially go through a drawdown phase and that's normal. In this post we will explain practical steps to quickly bounce back from a trading drawdown. 1: Cut your trading size The first and foremost thing to do after a drawdown is to immediately cut your trading size. Otherwise, you can make more losses. Cutting the size ensures no further damage and protects your account, buying you time to reflect. 2: Take some time off Immediately after a big drawdown, a trader should take some time off from markets and focus on his hobbies and going out. This instantly stops the account bleeding and gives you a sense of relief. 3: Avoid revenge trading Strictly avoid the urge to recover all the losses quickly. In fact, ...

Happy Valentines Day From Market !!!

NIFTY -220 to + 120 340 pt BANKNIFTY -550 to +670 1220 pt MIDCAP -500 to +400 900 pt SMLCAP -250 to +280 530 pt Happy Valentines Day From Market !!!

You can get pretty damn far in life by just doing the "old fashioned" things well:

Look people in the eye Be reliable Stand up straight Do what you say you'll do Be on time Hold the door Have a confident handshake Some things will never go out of style.

Samsung 236 L (RT28C3733S8/HL) Refrigerator Review: A Compact Convertible Option

Samsung 236 L, 3 Star, Convertible, Digital Inverter with Display Frost Free Double Door Refrigerator (RT28C3733S8/HL, Silver, Elegant Inox, 2024 Model) The Samsung 236 L (RT28C3733S8/HL) refrigerator is a compact double door model with a clever convertible compartment. Let's explore its features and see if it's the right fit for your kitchen. Buy on Amazon Pros: Convertible Freezer: This refrigerator boasts a convertible compartment that can be switched between a fridge and a freezer depending on your needs. This offers flexibility for those who might stock up on frozen items occasionally or prefer more fridge space. Digital Inverter Compressor: Samsung's Digital Inverter Compressor is known for its durability, energy efficiency, and quiet operation. This can translate to lower electricity bills and a quieter kitchen environment. Frost Free Technology: No more manual defrosting! This refrigerator uses frost free technology to prevent ice buildup, saving you time and eff...

Overthinking is a disease.

Guilt. Worry. Anxiety. All have their root in just one thing - Overthinking. Overthinking is a disease. So here is a small story of overthinker Sunita and how she became worryless. Sunita worried a lot. A small thing like a grocery list could turn into a big worry in her head. She would imagine people making fun of her if she forgot something. Every text message that wasn't answered right away made her imagine the sender was mad at her. Her worry made it hard to do things, like writing a report for her job. One day, her cat knocked over a lamp and made a mess. Cleaning it up helped Sunita focus on something real instead of her worries. She realized that focusing on the present moment helped her worry less. The next day, Sunita tried a new way to work on her report. She set a timer to work for a short time, then took a short break. This helped her break the big job into smaller tasks that were easier to handle. It wasn't always easy. Sunita still worried sometimes, but n...

Trading is a get-rich-slow project.

Trading is a get-rich-slow project. Rushing the process only lengthens the journey. Gamblers give a lot of importance to short term outcomes. Be a professional trader. Develop a strategy with a positive expectancy and play the long-term game. If you followed your trading plan but still lost money... you still won. You won a psychological battle, and this should be celebrated. Over time, consistent actions beget consistent results. That's a great perspective on trading! Here are the key points: Patience is key: Trading is a marathon, not a sprint. Focusing on long-term gains through a well-defined strategy is crucial. Don't gamble: Professional traders rely on analysis and strategy, not hoping for a lucky break. Sticking to the plan is a win: Even if a trade loses money, following your plan demonstrates discipline, a key trait for success. Consistency builds results: Regularly applying your strategy is vital for building a track record of success. Overall, this is a s...

In trading How to objectively identify pullbacks and reversals ?

Identifying pullbacks and reversals objectively in the market can be tricky, as there's always an element of uncertainty. However, technical analysis offers some tools and techniques to increase your chances of making a good call: Understanding Pullbacks vs. Reversals: Pullbacks : These are temporary setbacks in the prevailing trend. Prices retrace a portion of their previous move before resuming the trend's direction. Reversals : These signal a more significant shift, where the price movement changes direction for a longer period. Identifying Pullbacks: Trend : Analyze the price chart to establish the current trend (upward or downward) using trendlines, moving averages, or other technical indicators. Support/Resistance Levels: Look for pullbacks happening near established support (uptrend) or resistance (downtrend) levels. These areas often act as temporary resting points before the trend resumes. Momentum : During a pullback, there's usually a decrease in trading volume ...

Strategies for Short-term Traders

Stockbee has spoken several times about Mark Boucher's Hedgefund Edge book, particularly the Appendix A in the back that discusses "Strategies for Short-term Traders" and "Trading Runaway Moves". This book is hard to come by. It was written in the late 90s, and I think, is pretty pricey on Amazon. In the section Boucher discusses a trading strategy focused on identifying and capitalizing on "runaway" stock or futures moves. The primary pattern in focus is the "flag within a flag pattern," which is observed in a flag trading range. Here are the key points summarized from the content: Flag Trading Range: This is a pattern where a stock or futures contract makes a strong run-up and then consolidates for a while, forming what looks like a flag, before breaking out again to the upside. The breakout from such a pattern can often result in prolonged moves higher, making it a potentially profitable trading situation. Mixing Time Frames: By mixing...

10 Trading Mistakes that will make you a loser!

You love trading, but your results constantly disappoint you. Here are 10 mistakes you're making right now: 1. Trying to learn everything there is to know about every aspect of the markets. You will need to unlearn 90% of it later to make real progress. Instead, focus on the key principles that drive market movements and price action. 2. Not focusing on what works for you and what doesn’t. Understand your risk profile, strengths, and weaknesses. Develop a method based on your real-time trials & errors. 3. Over-optimizing your trading system. The goal is to find a system that works for you, not to find the “holy grail”. You can minimize risk and limit losses—but you can't remove them. 4. Not keeping a trading journal. Tracking your trades is essential for analyzing your performance and improving your results. It creates a constant you can refer to and uncover hidden patterns/flaws in your performance. 5. Not having realistic expectations. Most people expect to make a fort...

DPZ Shares

Search This Blog