Intraday Trading Strategies Performance: Insights and Market Analysis
Last week was a tough one for the markets as Nifty declined by 3.95% and Nifty 500 by 4.22%. The selling was broad and across the board, reminding us of the volatile nature of intra-day trading. Despite the challenging market conditions, some strategies stood out, showcasing the importance of a diversified approach to trading.
Performance Overview
As of September 18, 2020, the performance of my trading strategies is subject to regular updates and real-time monitoring. I have shared the consolidated profit/loss for the month of August 2020 and detailed the profit/loss for September 2020.
Interestingly, after several profitable trades in August, there were occasional lossy trades in September. This brought about a phase of caution, and I took a voluntary break from giving live trading calls. My group members observed the strategy for a few days, and only after confirming that the corrected technicals were yielding good results did we resume our real trades on September 25, 2020.
The detailed trade and profit/loss for each day from August 3, 2020, to the present can be found in my space, where I post such information regularly. This ensures transparency and helps in understanding the strategy's performance in different market conditions.
Key Strategies Explained
DYR Dual Momentum Strategy: This strategy focuses on identifying trends through momentum indicators. However, like most momentum-based strategies, it saw some drawdowns in the recent market correction.
DYR Mean Reversion Strategies: These strategies take advantage of price reversals, particularly in volatile or sideways markets. They provide necessary diversification to the core momentum portfolios, helping to mitigate losses during challenging market phases.
Hybrid Strategy: This combines the strengths of both momentum and mean reversion approaches. The Hybrid Strategy has shown healthy returns, with a current portfolio performance of around 19%. It also experienced a drawdown of about 3.5% in the last week, aligning with the broader market trends.
Performance in Detail
Below is the real-time performance of the Hybrid Strategy since June 30, 2020:
Real-time Portfolio Returns: The Hybrid Portfolio has remained robust, with returns around 19%. A drawdown of approximately 3.5% was observed in the last week, which is consistent with the market conditions. As we move forward, it will be interesting to see how these strategies perform under different market scenarios.
For more detailed performance capsules and information about these strategies, check out my profile. The usual performance capsule is not available this week due to some issues with the data vendor, but it will be back soon!
Have a great weekend!
Note: The content is based on my personal views and experiences as a trader.