The Real SIP

 

Why do Stock Markets attract us?

Would you trade this

Or Would you trade this

Not Investment nor Trading

  • This is JOBBING which was done for 100 years and is being done now too
  • New name for this concept is market making
  • How does it Work





































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    Day 3















































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    What happens if 100% capital is deployed

     

    Worst Case Scenario

    • Rs 1 lakh invested in a Rs 400 scrip @ Rs 1 diff & 5 quantity each step
    • Rs 1 lakh will be fully invested at 348
    • Total Stocks accumulated – 265
    • Portfolio Value @ Rs 348 – Rs 92000
    • Notional Loss – Rs 8000

     

    Worst Case Scenario

    • Assuming 40 churns a day
    • Profits on a/c of Gap Up & Gap Down
    • You will earn Rs 135 per day or Rs 2772 per month (NET OF ALL EXPENSES)
    • So even if this strategy runs for 2 months the loss on a/c of fall will be compensated by jobbing profits

     

    Selecting Scrips

    • Stocks with Volatility
    • Stocks with fundamental strength
    • Top 200 scrips is preferred
    • Stocks with intrinsic value
    • Essential Product companies

     

    SIP vs Real SIP

    • SIP or systematic investing is a way to invest small sums of money at regular time intervals to achieve our long term financial goals
    • Real SIP is a algo trading strategy to invest small sums of money at regular price intervals to achieve short term gains

     

    The Real SIP – Concept

    • The algo strategy will keep buying and selling the defined scrips in a clients portfolio at regular price intervals automatically without any human intervention
    • Daily small profits are added to the clients a/c as the strategy continuously exits from its profitable positions

     

    The Real SIP – Example

    • Mr A plans to invest Rs 5 lakhs in Real SIP.
    • Identify’s 4 stocks
    • Price interval and qty is calculated for the investment
    • For eg. Reliance Capital 10 shares to be bought at every Rs 5 dip

     

    The Real SIP – Algo Process

    • The algo starts buying Reliance Capital every time it drops by Rs 5 from the last purchase for example Rs 440 / 10 shares, Rs 435 / 10 shares and so on…
    • Vice versa every time the price of Reliance Capital moves up by Rs 5 from the purchase price it exits and books the profit

     

    The Real SIP – Risk

    • In the event of price of the scrip falls beyond initial calculations the investment holding period would increase thus having a direct impact on the ROI
    • If the volatility of the scrip decreases then the returns will be impacted

     

    Can I Do it on Commodities

    • Yes you can
    • The risk and reward both will increase 3x
    • But 2 major concerns
      • Cost of Rollover
      • To bear the MTM

                                                                                                                    Invest Now

     

    Disclaimer*

    The information given on this website is general and not targeting any person's situation. It's only for knowledge purpose. The strategies and recommendations given by the research team are their personal views so we do not take any guarantee of profits. Our team gives the advice as per the situation of the market, the final decision of investment will be completely yours. We advise you to not follow the past performance blindly because it's not an indicator of the future returns. Investment in the stock market is subject to market risks. We advise to read the documents carefully and take the advice of your financial advisor before making any type of investment. We are not individual financial advisor and do not take any responsibility of profit or loss. You can't take any legal action on us regarding the profit or loss through our financial advice.