Strategy description

Long-Term Investment Strategy:
SmallCap 50 Equity Buying Swing Strategy

Shared Code: ac69edcd-84fb-44ca-9e86-a12ff1c91ea3

The SmallCap 50 Equity Buying Swing Strategy is designed for medium-term to long-term investment opportunities within a defined universe of Nifty 50 small-cap stocks. This systematic strategy employs market sentiment and momentum indicators to select and manage a diversified portfolio of 20 stocks at a time, ensuring balanced risk and disciplined decision-making for entry and exit.

1. Universe Definition:
Stock Selection Universe: Pre-defined Nifty 50 small-cap index stocks.

2. Position Sizing & Diversification:

• Equal Weighting: Each of the 20 stocks is allocated equal capital (5% per stock or ₹5,000 per stock on a 1x multiplier).
• Diversified Exposure: The strategy spreads risk across various sectors within the small-cap space.

3. Entry and Exit Strategy:

• Stock-specific entries and exits are based on technical signals.

4. Risk Management:

• Capital Preservation: Strict stop-loss rules are applied to limit risk per stock.
• Position Rebalancing: Underperforming stocks are regularly reviewed and replaced with better-performing alternatives from the universe. Positions are liquidated upon hitting stop-loss, and new opportunities are selected from the remaining stocks.

5. Advantages of the Strategy:

• Systematic Approach: A disciplined, rule-based methodology.
• Diversification: Risk is spread across multiple stocks and sectors.
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Customer Support:
Mobile: 8097578729
Email: [email protected]

Disclaimer:
Patni Capital is not a SEBI-registered investment or financial advisor. Do not deploy any strategy solely based on past performance. Performance updates reflect live auto P&L for informational purposes only. Paper trading for at least a month is recommended for learning purposes. This strategy is intended for long-term investing and does not guarantee short-term wealth creation or profitability.