QUANT SYSTEM TRADE UPDATE -20.12.21

From the desk of Capt.D.Ganesh Raja

Dear Friends,

The Quant system short signal in Nifty given on 13.12.21 was on track and the first target was achieved today. So, on day closing basis of 16614.20, part of the short position in Nifty is closed and part position is held to ride out the intermediate trend. The second target of Nifty is 16450.0 but we will see where the system gives exit. In case I cannot update due to my Marine commitments, the readers can close their position at the indicated target.

There was a lot of work and struggle involved over the years when I was developing this system. There were multiple times I had given demo to participants in the industry and one of the constant questions was how the system worked. From a designer’s perspective it is all very simple when every part works in tandem to deliver a result. The inner workings cannot be explained because that would be giving away too much. Proving on a real time basis over a period of time is the only way to develop the credibility.

Coming back to markets, the daily oscillators are looking extremely oversold now, so some amount of respite for a few days cannot be ruled out.

GOLD (MCX): System gave a buy signal in Gold on 22.10.21, at 47,797.0, with a stop loss at 47120.0. I recommended to add to position in Gold on 13.12.21 at 48300, with stop loss at 47350.0. Continue to hold gold

Target1 – 50685.0, Target 2 – 54541.0, Leverage 0.3x plus 0.5x recommended on 13.12.21.

Minimum profit potential – 6%. Asset allocation profit potential – 1.8%.

Minor trend: Up, Intermediate trend – Up, Long-term trend – Neutral with upward bias.

Note for reading this report:

Note1: The stop losses are on end of day basis

Note2: When trade recommendation is given around a certain price, it means that the trade may be taken the next trading day or if a price zone is given for taking a trade then trade has to be taken on the day price reaches within that zone.

Note3: A separate excel sheet is attached to view the performance of the recommendations, which also reduces the task of individually reporting the performance of each trade recommendation. Viewing the excel sheet “TRADE RECOMMENDATION LOG” will be self-explanatory. Also in this sheet Trade recommendations which are still active are marked.

When signals are triggered mid-week, that is updated in log sheet and covered in the weekend report, due to paucity of time.

EXISTING TRADE RECOMMENDATION OVERVIEW

1. BPCL: Recommended to short BPCL on 14.12.21 at 392.30. Target 1 achieved as of today’s closing of 360.10, delivering absolute returns of 8.21% and asset allocation returns of 1.64%. Trade recommendation closed.

2. COAL INDIA: Recommended to short COAL INDIA on 14.12.21 at 148.90 with stop loss at 161.0. Target 1 is at 127.0, so continue to hold short position. As of today’s closing, of 140.80 it has absolute returns of 5.44% and asset allocation returns of 0.54%.

NEW TRADE RECOMMENDATION

NO NEW TRADE RECOMMENDATIONS.

TOTAL LEVERAGE OF ABOVE NEW TRADE RECOMMENDATIONS:NA

COMBINED PROFIT POTENTIAL FOR ABOVE TRADES: NA

TIME WINDOW OF TRADES: 7 DAYS TO 30 DAYS.

TOTAL LEVERAGE INCLUDING UNCLOSED POSITIONS AS PER PREVIOUS RECOMMENDATION: 1.4X

RETURNS TILL DATE SINCE 04.07.20 : 65.61% (AS OF MONDAY 20.12.21 CLOSING)

TRADE RECOMMENDATION LOG.pdf

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