MOMENTIFY: HANDLING OF IDLE FUNDS
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Definedge’s Momentify is an excellent platform that makes very effective use of concepts like relative strength and momentum. In other words, Definedge has made a platform called Momentify available to retail investors like me by skillfully applying relative strength and momentum concepts... no amount of praise for it would be enough.
I have been using it for the last three months or so. In the initial phase, I used to worry about potential losses whenever the market suddenly fell between two rebalancing dates. But gradually, I realized that the prices of stocks selected based on Momentify’s Volar, a volatility based ranking do not fall as sharply.
It has become very clear to me how backtesting one’s own strategy and then deploying it builds conviction.
I am aware that this team is continuously working on innovations and improvements across all its platforms to make them more user-friendly. Still, I would like to offer one suggestion. Many times, shares exit as per the strategy rules between the rebalancing dates and also when the entry conditions are not favorable, no buying happens, the funds remain idle in the account. This often creates the temptation either to transfer the money back to the bank account or to spend it on buying some “अच्छे लगने वाले” stocks, which eventually leads us away from the original strategy.
If Momentify were to provide an option to invest such idle funds into a predefined liquid ETF fund, it would be excellent. I believe that elaborating further on this point would almost amount to questioning the team’s capability.
Once again big thanks to the team for providing such an innovative and excellent platform to us.
-Rajendra Manke
