Readers of this blog are familiar with the strategy which was named Money In The Bank in November 2019.

The first set of trades was taken on November 01, 2019.

The strategy has now completed a 34 month journey. Another two months and we shall be analyzing 3 year performance.

The strategy had done very well till February 2022.

Please read the status report here.

https://optionsnext.com/money-in-the-bank-journey-that-began-in-november-2019-review-of-28-months/

After that we had more bad months than good and position after closing the August 2022 series is slightly worse off compared to what it was in February 2022.

https://optionsnext.com/money-in-the-bank-august-series-closed-sunday-story-august-28-2022/

Cause of concern?

Not much.

Any strategy can go wrong at times.

Out of 34 months, this strategy has given profitable result in 24 months.

That is a success percentage of 70.58.

Historically, the success %age should be about 75.

Once we get back to that level, profitability too will get better.

Let us now have a look how the returns compare with the returns from individual banking stocks and the index.

Stock/IndexPrice 01/11/2019Price 23/08/2022%Gain
HDFCBANK1240.051465.8018.20
ICICIBANK462.25863.9086.89
KOTAKBANK1579.901855.7517.45
SBIN313.55521.9066.44
AXISBANK748.30747.05(0.16)
NIFTY11890.6017577.8050.35
BANKNIFTY30330.5538697.6527.58
MIB Strategy50000096891893.78%

We see that only ICICIBANK and SBIN have performed creditably among the top 5 banking stocks. Performance of HDFCBANK and KOTAKBANK has been poor and AXISBANK has just failed to perform in this period.

Unless one was lucky to invest in just ICICIBANK or SBIN, banking stocks would not have given good returns.

The returns from the Money In The Bank strategy are better than even the best of individual banks.

We can not ask for more.

Strategy has done better than the indices and has given better results than any of the banking stocks.

It is simple and it is profitable.

We just have to keep the faith and place the trades month after month.

It is much better than putting the money in any ETF.

ETF investor does not trade everyday. MIB trader trades only once or twice in a month. This little work leads to much better returns than any ETF.

We continue with the strategy in the months to come.

Readers’ comments are welcome.

The site is back after a break. Your continued patronage is requested.