Let us review the performance of the strategies being discussed on this blog over last few months.
One goes for strategies with the main objective of avoiding a big loss while looking for a reasonable return on the capital deployed for trading. Strategy that meets this requirement over a period of time can be said to be a good strategy.
Today we look at how the two strategies have performed.
The Lazy Trader:
On March 31, 2020, a review was done. I reproduce the content here.
The numbers are not good. We have to be honest with ourselves.
August 2019 —– Rs. 111168
September 2019 — (-) Rs. 104225
October 2019 ——– (-) Rs. 78325
November 2019 —- (-) Rs. 12210
December 2019 —– Rs. 44669
January 2020 ——– (-) Rs. 1583
February 2020 —– Rs. 42989
March 2020 ———- Rs. 142251
Profit ————— Rs. 44734.
Now we look at the next 3 months.
April 2020 ————– Rs. 130416
May 2020 ————– (-) Rs. 80921
June 2020 —————- (- ) Rs. 25458
Profit ——- Rs. 24037
Profit over 11 months —– Rs. 68871.
A slight profit but surely not the greatest show on earth. The trading costs will nullify the entire profit amount.
This strategy works on the principle of out performance by the heavy weight stocks. In these 11 months, there is no significant out performance. The results reflect that failure.
We shall continue to monitor.
Not So Lazy:
A modification to The Lazy Trader is now being monitored on this blog. It was a loss in May Series and profit in June with a net profit over 2 months. Let us see how it sustains over a long period.
MONEY IN THE BANK:
All of us would like money in the bank. In our account. From our trading. That generally does not happen with most of the traders. Probably we have found the key to successful trading in this strategy.
The first review was done at the end of March 2020 Series.
Details from that post:
Money In The Bank :
It has performed much better.
November 2019 : Rs. 8382
December 2019 : Rs. 43337
January 2020 : Rs. 38477
February 2020 : Rs. 28133
March 2020 : (-) Rs. 11227
Profit : Rs. 107102
Let us now look at the next 3 months.
April 2020 : Rs. 70192
May 2020 : (-) Rs. 7687
June 2020 : Rs. 34777
Profit ———- Rs. 97282
Profit over the 8 month period : Rs. 204384
We can call it a great performance so far. Capital requirement is much less than that required for the lazy trades but the results are far far better. The strategy has delivered the profits consistently.
We carry on with it and see where it takes us over next 3 months. Hopefully we shall be in a better position.
Money In The Bank is a winner.
I would like to know readers’ views on these strategies.
Disclaimer: This post and examples are for teaching purpose only and are not meant as advice/suggestion to trade in these stocks. Trading in Futures and Options can lead to big losses and should be done with appropriate knowledge and advice only. Mentioning the stocks here does not imply that I have a trading position or likely to take a trade in these stocks.