Fact-sheet for Stock ideas

Methodology

Our stock recommendations operate on the principle of trend following, employing a

strategy of buying high and selling even higher.

Identified through our proprietary quant-based model, we aim to capture upside

potential while mitigating downside risk.

Universe of stocks

Recommendations would be limited to Mid and Small cap stocks i.e. 101st stock to
500th stock by average market cap of the last 6 months. Since Mid and Small cap
stocks tend to be more volatile, the model has been designed to limit extreme
volatility.

Other criteria

In addition to technical indicators driving the trend following approach, we

incorporate fundamental checks to filter out stocks with poor fundamentals of
corporate governance issues. Since this is a trend following system, it is possible
that there are several small losers and few big winners which generate outsized
returns

Liquidity checks are integral to our model, ensuring recommended stocks maintain
sufficient liquidity.

Success rate:

While the win rate of the strategy may range from 27-55%, the average profit for
winning trades stands at 34.86% while the average loss for losing trades is just
10.43%. This indicates that for every ruppee of loss, reward generated is of ₹3.34.

Holding period:
Holding period for a position can last from a few days to many months depending
upon how long the trend lasts. Average holding for profitable trades is 182 days
whereas for loss making trades the average holding period is just 71 days. We ride
the winners for a much longer time and exit the losers early.

*Data as on 25th Jan 2024

Risk control measures:

This model keeps a strict stop loss after giving a buy recommendation. This is
updated post market close everyday, triggering a sell call as soon as this stop loss
is hit as we want to minimize our losses for losing trades.

Performance highlights

Our recommendations have given the below returns in 1, 2 and 3 years

respectively.

1 Year XIRR 2 year XIRR 3 year XIRR

39% 43% 61%

This XIRR is the median of all rolling XIRR’s of all the periods of 1Y, 2Y and 3Y
respectively, between 1st Jan 2018 till 25th Jan 2024.

Profitable calls Loss making calls

Average profit/loss 34.9% -10.4%

Average holding period 182 days 72 days

Maximum profit/loss 260% -23.3%

This data implies that the reward risk is huge for profitable calls. For every ₹1 risk
of loss, you get rewarded with ₹3.3 gain.

Here is the range of returns and the profitable/loss making calls

Returns Profitable calls

More than 100% 22 calls

50 to 100% 36 calls

15 to 50% 143 calls

10 to 15% 32 calls

0 to 10% 77 calls

Returns Loss making calls

<-20% 2 calls

-10% to 0 108 calls

-15% to -10% 102 calls

-20% to -15% 47 calls

Past winners

These are the top performing 50 calls given by our stock recommendations

Call Return in% Open date Closed date Holding days

TATAELXSI 260.13% 16/10/20 20/12/21 430
TATAELXSI 254.20% 30/10/20 20/12/21 416
TATAELXSI 249.89% 06/11/20 20/12/21 409
TATAELXSI 229.00% 23/10/20 20/12/21 423
BSE 198.45% 07/07/23 23/01/24 200
BSE 186.21% 21/07/23 23/01/24 186
BSE 178.73% 14/07/23 23/01/24 193
AARTIDRUGS 178.19% 12/06/20 31/08/20 80
AARTIDRUGS 171.47% 05/06/20 31/08/20 87
CDSL 170.07% 25/09/20 10/08/21 319
CDSL 164.03% 01/10/20 10/08/21 313
BSE 163.23% 28/07/23 23/01/24 179
AARTIDRUGS 154.77% 19/06/20 31/08/20 73
BSE 145.12% 04/08/23 23/01/24 172
BSE 135.00% 11/08/23 23/01/24 165
SONATSOFT
W 116.46% 23/10/20 22/10/21 364
SCHAEFFLER 112.53% 03/09/21 28/09/22 390
AARTIDRUGS 112.33% 03/07/20 31/08/20 59
AARTIDRUGS 111.44% 26/06/20 31/08/20 66
IEX 106.05% 26/03/21 25/10/21 213
IEX 102.38% 16/04/21 25/10/21 192
IEX 101.42% 01/04/21 25/10/21 207
IEX 99.66% 09/04/21 25/10/21 199
AARTIDRUGS 99.43% 10/07/20 31/08/20 52
IEX 95.42% 23/04/21 25/10/21 185
APOLLOHOSP 88.88% 09/10/20 19/10/21 375
IEX 88.74% 30/04/21 25/10/21 178
IEX 88.47% 19/03/21 25/10/21 220
KAJARIACER 83.79% 14/11/20 22/11/21 373
AARTIDRUGS 82.16% 17/07/20 31/08/20 45
JBCHEPHARM 81.58% 27/03/20 23/09/20 180
SCHAEFFLER 79.51% 28/01/22 28/09/22 243
IEX 79.41% 07/05/21 25/10/21 171
SCHAEFFLER 74.68% 25/02/22 28/09/22 215
KAJARIACER 72.19% 27/11/20 22/11/21 360
AARTIDRUGS 70.95% 24/07/20 31/08/20 38
SCHAEFFLER 70.68% 18/02/22 28/09/22 222
BLUEDART 70.34% 30/10/20 15/02/22 473
BLUEDART 69.11% 06/11/20 15/02/22 466
ZENSARTECH 63.00% 24/02/23 25/10/23 243
CYIENT 62.03% 31/03/23 23/10/23 206
CYIENT 61.07% 24/03/23 23/10/23 213
BLUEDART 60.66% 04/12/20 15/02/22 438
CDSL 60.31% 07/05/21 10/08/21 95
SCHAEFFLER 58.64% 13/05/22 28/09/22 138
BLUEDART 57.59% 27/11/20 15/02/22 445
BLUEDART 56.79% 20/11/20 15/02/22 452
BDL 56.51% 04/03/22 02/05/22 59
CDSL 54.29% 14/05/21 10/08/21 88
CYIENT 53.39% 06/04/23 23/10/23 200

*Data shown in this factsheet is between 1st Jan 2018 to 25th Jan 2024

Notes

1. The data considered for this backtesting starts from 5th Jan 2018
2. For buy calls, the buy price is considered as the close price of the previous
trading day. Since the buy recommendations go on the first trading day of
the week, the buy price would be the closing price of the last trading day of
the previous week.
3. For exit calls, the sell price is considered as the close price of that trading
day.
4. The XIRR of a particular period is calculated on the basis that
 a. All buy and sell calls are promptly executed at the recommended
price
b. To be able to calculate returns at the end of a period, all open calls
at the end of that period are considered to be sold at the closing
price of the last trading day of that period.
5. If a recommendation comes multiple times, we are treating it as a separate
recommendation on every instance.
6. The stocks recommended belong to the Mid and Small cap universe which
is 101th to 500th stock by average market cap of the last 6 months.
7. Current price of stock shown on the app lags the real time price by 5
minutes.

How to get started?

Follow this smooth process to receive stock recommendations in just a few minutes

1. Avail this complimentary feature included in your Genius

membership.
This feature is part of Genius for a limited time, so make the most of it now
2. Receive 2 stock recommendations every week.
Without fail, 2 stock recommendations will be issued on the first business day
of the week. View them on the app.
3. Execute this through your broker.
Buy these 2 stock recommendations in equal amounts from your broker
4. Sell this after our recommendation.
This sell call will be issued after the market closes. Look for the
recommendation in your app/notifications.