A Better SIP strategy

Algos, strategies, code
1

INTRODUCTION

For all the people who are doing SIP in your Mutual Funds (Good :blush: )
But let me tell you “YOU ARE AVERAGING in Average way”… thoda style seeklo yaar

What do I mean by that : You are giving equal value to GOOD BUY ZONES (when markets are in bearish mode)
where you supposed to give more value to invest more and this is how I’m doing it.
I wanna be very clear here and ill discuss these

STRATEGY
ADVANTAGES
DISADVANTAGES

STRATEGY

  1. Goto Tradingview.com

  2. Lets assume you are investing in NIFTY 50 MUTUAL FUND and LAUNCH NIFTY WITH 5yr CHART (cuz we are long term investors)

  3. ADD RSI and change the LENGTH TO RSI := 4

    Screenshot 2023-02-05 at 4.41.42 PM
    Screenshot 2023-02-05 at 4.41.42 PM2294×1328 303 KB

  4. Whenever NIFTY CROSSES 15 on RSI Buy 3x the SIP amount (don’t do lumpsum, cuz we never know how much bottom index can go)

  5. Thats it

ADVANTAGE

  1. Out of 10 times 7 times you will be investing in the Bottomzone (+500/-500 points ofcourse)

  2. Generating more XIRR, and kinda subtle flex saying “mai tho market dip mai kharidh liya”

DISADVANTAGE

  1. No strategy can time the market, so you can’t be sure that “the point at which. you invested will be the bottom of the crash/correction or whatever”

ALL INSIGHTS ARE BACKTESTED PROPERLY, NO RECOMMENDATIONS FROM MY SIDE

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What I feel is, when it comes to retirement investing, the less they fiddle with their monthly SIP’s, the better it gets.

The more someone become active with their SIP adjustments, they are likely to do some mistake that might spoil the show and might take several years to recover.

Keeping aside savings from your monthly income itself is difficult, so cumulating a corpus in your salary account until rsi reaches 15, not sure if that money is going to last.

The focus should be on forgetting about your retirement savings corpus, until you are retired.

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Fiddling with your SIP’s, Like with short term trading, on paper and video it looks good and the wise thing to do.

But when it comes to practical applicability, the idea is not compatible with most of the participants.

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4

AGREED
But here’s the thing, what is said is for those guys who are not having expertise of tracking and understanding the dynamic of stock markets, Yes the more a NAIVE investor sees their portfolio the more the chances of making mistakes

  1. This is for those who has little bit of experience and have forte regarding their emotions in tough times

But Thanks for your insight about this post

1 Like
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I actually want to do something like this but the problem is how do we automate, my whole reason of SIPing is to automate and not interfere. I would be happy if zerodha gives some baisc api’s to do this along with static data API’s. Currently APIs are costly @2000/m for someone who isnt a trader…

PS - previously there were conditional SIPs which were great but now we know the situation …

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Well I’m following this
May not be the fully automated but here’s how it goes
Whenever it reaches RSI15
i get a phone alert
Then, i wont read news, see tweets and etc
just go to zerodha and invest