Hi everyone,

I’m new to Point & Figure charts and currently using a 1% x 3 chart on a daily time frame. I’m a bit confused about the best way to handle stop losses in this setup.

Since the chart updates only after the end of the day, I’m not sure whether I should wait for the EOD confirmation of a reversal (like a double bottom sell) before taking action, or react earlier during the day.

My concern is that if I wait until the chart updates at the end of the day, the price might fall much more during the day and increase my loss.
But if I act based on intraday price movement, the price might reverse later and the double bottom sell pattern may not even appear on the daily chart by EOD.

Would appreciate any advice or best practices on how others handle stop losses in this kind of setup.

Thanks!

Hi Team,

I’m following the MI: GSec Filter (MIP-15) strategy with a monthly SIP and my rebalance date is set to the 27th of every month.

Last month (27th September)which was my first month, the strategy did not execute because the Nifty 500 / Nifty GS Composite ratio was below its 20 EMA, which I understand is expected behavior when the market trend filter turns bearish.

However, when I checked today (26th October), the ratio is now above the 20 EMA, but my stock basket is still showing as empty. Since today is Sunday, I wanted to confirm —
shouldn’t the basket be created based on Friday’s closing prices (25th October) and be ready for execution tomorrow (27th October)?

Additionally, I’d like to understand how unused SIP funds are handled. Since no stocks were bought in the previous rebalance, will the funds from last month be combined with this month’s allocation and invested together in the shortlisted stocks during the upcoming rebalance?

Thanks in advance for your help in clarifying these points.

Best regards,
A.Wasay