Momentum Investing observation sharing cum guidance required
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Dear Prashant Sir,
I am a great fan of your Momentum Investing Stratagy. I am in its learning phase.
When back testing MI on different parameters on different NIFTY universes, I have come across the following observation :
Filters work wel on all universes and reduce the max draw down on all universes keeping without much compromising on CAGR over a period of time except in case of NIFTY 300 (500-200) Universe where compromise in CAGR is over 12% to 15% over a period of time say 1.4.2001 till date which turns out to be huge amount in final market value of initial investments over a period of 24-25 years, reducing max drawdown from around 21% to 11%. (reduction in max D/D is quite normal as in case of any other universe).
I wonder What could be reason behind such different behavior of NIFTY 300 alone in giving CAGR with and without filters, given the fact that even NIFTY 500 (of which NIFTY 300 is also a part), does not compromise much on CAGR with filter, even NIFTY 50 or NIFTY 200 for that matter(which are also a part of NIFTY 500)
Prashant Sir, could you please throw some light in the matter.
Does it mean that one need not put index or RS filters on NIFTY 300 universe if he is comfortable with max d/d of 20% to 25%, if he wants to compound his investments at a very high rate? I just want to ensure that i don't end up in learning a wrong lesson
Thanks a lot for introducing Such a wonderful Investment strategy and making it truly automated through Momentify Portal.
