Strength Trend Volatility picks from NSE 500 for 28th December 2020
Disclosure : I am not a registered SEBI advisor and this post is a merely for educational purposes. I am a Software professional and playing around with Data and finding patterns in them interests me. Please treat this post merely as an educational initiative and nothing more.
These stock picks are a result of the Strength Trend Volatility picks from NSE 500 for 28th December 2020. This is part of an algorithm that I run which does three key things, listed below:
From the universe of NSE 500, STV algorithm (Strength Trend Volatility algorithm) first scans and filters out stocks which are not strong on various timeframes. I like to pick stocks which are strong across 50, 100 and 200 days. This considerably reduces the universe to only those stocks which have inherent strength in them.
From the filtered list of stocks we pick stocks which are performing at par or better than Nifty 200 across various 3 timeframes (short, medium and long). It is a strong learning I have picked that when you are picking stocks for the shorter term, its best to be with stocks that are not underperforming the index across various timeframes.
Next, rank and pick 15 stocks which have volatility adjusted trend. What this means is that we want to pick stocks which have a smoother linear curve as compared to those which are going up one day and coming down the other day. Remember that saying, slow but steady wins the race.
Below are the 15 stocks that STV algorithm has picked up for the shorter term. These will become a buy candidate only above the prices mentioned. For STV algorithm, a biweekly rebalance will be done. So the next refresh will happen now on 10th January 2021.