Trending Ten: Active Trading Strategy
Introducing Trending Ten, a powerful trading model that specialises in capturing short-term stock trends. This model employs a systematic approach to identify the top ten trending stocks with substantial volumes, providing investors with valuable insights and opportunities to capitalise on market movements.
In this post, we'll delve into the key features and benefits of Trending Ten, providing insights on how it can complement your existing strategies.
What is Trending Ten?
Trending Ten is a positional, medium-volatility trading model that utilises a long-only, trend persistence strategy. The model identifies the top ten trending stocks with the highest turnover and filters out those that have risen with an increase in turnover to take advantage of a further up-move. It picks the top 10 best performing stocks to go long on from the NIFTY 500 universe.
How does it work?
The model algorithm uses a relative momentum strategy, which also takes liquidity effect into consideration. It filters out the stocks which have risen with an increase in turnover to take advantage of a further up-move. The model picks up ten such stocks, holds it for two weeks and exits them all, this process is repeated every fortnight.
Is Trending Ten suitable for me?
Trending Ten is suitable for investors who can tolerate portfolio volatility slightly greater than broader indices and can take time out once just once a fortnight to act on the signals.
Note: The model is designed to capture trending stocks, but it is important to remember that the stock market can be unpredictable and that trends may change unexpectedly.
Kindly conduct your own research and consult with a financial advisor before committing to the strategy.
The returns stated below are calculated on a base capital that includes a 30% reserve that earns no returns.
*Backtest period for Performance Metrics is Apr’ 2014 to Sep’ 2022.
Returns include slippages.
Frequently Asked Questions:
How is Trending Ten different from other trading models?
Trending Ten is a model that systematically captures short-term trends in stocks by identifying the top ten trending stocks with substantial volumes.
What are the chances of success with Trending Ten?
The model is designed to work well when the mid and small cap stocks are in an uptrend.
However, in a sideways market and in downtrends, the model may underperform for brief periods.
What is the minimum capital requirement?
The minimum capital requirement for Trending Ten is ₹1,00,000.
How often do I need to act on signals?
It is recommended that you act on 4 signals per month
How long should I subscribe for?
A minimum period of 1 year is recommended for optimal results.
Trending Ten is a valuable addition to any investor's portfolio. Its unique strategy of identifying the top ten trending stocks with substantial volumes and holding them for two weeks allows for capturing short-term trends in the stock market. If you can tolerate portfolio volatility slightly greater than broader indices and can take time out once just once a fortnight to act on the signals, this model may be suitable for you. We recommend consulting with your financial advisor before making any investment decisions.
Disclaimer: The information provided in this post is for general informational purposes only. It should not be considered as financial or investment advice. Please conduct your own research and consult with a financial advisor before making any investment decisions.
Past performance is not indicative of future results and all investments involve risk.
The authors and the company they represent do not guarantee any specific outcome or profit.