#VGM System Update for Practitioners

[nishshkumarjaani@gmail.com]

#VGM System Update for Practitioners

As we continue refining our approach for long-term consistency and capital protection, here are two important updates in our #VGM portfolio framework:

1. Portfolio Breadth Increased:

We will now maintain a minimum of 25 stocks in the portfolio (up from 20), with equal weight allocation.

️ This ensures diversified exposure across strong RS names and reduces portfolio-level volatility.

️ Max allocation per stock = 4% of total capital.

2. Risk Control Enhancements:

Maximum stop-loss from entry has been standardized:

• Exit if DBS triggers OR

• Maximum 20% stop-loss, whichever comes first.

In the rare case a stock hits the full 20% stop-loss, the capital impact is just 0.80% (4% × 20%).

️ This keeps our emotional comfort and portfolio stability intact while letting winners run.

Why This Matters:

We are not here to avoid losses—we are here to control them sharply and let trend & strength create outsized winners over time.

Small controlled losses + Strong trend-followers = Sustainable performance

#VGM #RiskManagement #TrendFollowing #RSbasedInvesting #ProcessOverEmotion