RupeeCase
Systematic 101 . Starter Strategy . 3 of 3
The Lesson
First strategy is about behavior. Not max returns.
If you cannot sit through a 23 percent drawdown on Rs 24K, you cannot sit through one on Rs 24 lakh.
01
Pick the smallest strategy you can take seriously.
If Rs 24K is a sum that lets you watch a 23 percent drawdown without flinching, this is the right starter. The drawdown is the muscle, not the entry.
02
Hold through one full rebalance cycle before judging.
The strategy rotates every 28 days. Performance over 1 cycle tells you nothing. Performance over 12 cycles tells you what the rule actually does.
03
Compare to the index, not to a friend's tips.
3.53 percent of CAGR alpha over 5 years vs the NIFTY 50. Compounded, that is the difference between Rs 24K becoming Rs 46K vs Rs 39K. The rule earns the alpha. The behavior keeps it.
First strategy builds the muscle. The next one needs the muscle already there.
10 stocks. 4W rebalance. Methodology open.