Methodology

How a stock gets picked — and dropped

Every position in the model portfolio comes from the same repeatable, rule-based process — no tips, no gut calls, no story-telling. Here is exactly how a stock gets in, how it is sized, how long it stays, and how we judge whether the whole thing is actually working.

1

The universe — 1,500+ stocks, screened daily

Every trading day, the engine screens more than 1,500 listed stocks from scratch. Nothing is followed out of habit or affection — each name is re-tested against the same rules, so a fresh opportunity is never missed and a stale favourite is never carried.

2

Strict, rule-based entry conditions

A stock is a candidate only when it satisfies every entry condition — a precise, pre-defined setup, not "it looks good." The conditions are quantitative and identical for all 1,500+ stocks, which strips out human bias and makes the process repeatable and auditable.

3

Proprietary indicators, read in long-term context

The entry logic is driven partly by technical indicators we designed in-house, rather than the off-the-shelf signals every screener already runs. Just as important, each candidate is assessed against its multi-year price structure — so we act on where a stock sits in its larger journey, not on a few weeks of noise.

4

Liquidity and tradability filter

A good-looking setup is worthless if you can't get in or out cleanly. Surviving candidates are filtered for adequate liquidity and market participation, so the portfolio is built on stocks that can actually be traded at scale — not thin names that trap capital.

5

Position sizing and capital discipline

Before a name enters, the system checks how much capital is available and how it should be deployed. Any single position is capped at roughly 1/30th (~3.3%) of the model's capital — so no individual stock can dominate the outcome, good or bad.

6

Selective signals — conviction over frequency

Signals fire only when the setup is genuinely favourable. On the strongest days the system may surface up to five new entries; on many days it surfaces none. Fewer, higher-conviction entries are a design feature — the system is built to wait, not to trade for the sake of activity.

7

A model portfolio of up to 30 stocks, across the cap spectrum

Qualifying names build into a model portfolio of at most 30 stocks, spread deliberately across the market-cap spectrum — from more volatile small-caps to steadier large-caps. The result is diversification across size and risk, rather than a concentrated bet on one theme or one segment.

8

Held on momentum — exited by rule, not by stop-loss

Positions are typically held for one to three months and stay in the portfolio while the trend and momentum remain intact. Rather than a fixed price stop-loss, exits are triggered when the system judges that momentum has faded. Because there is no hard stop, an individual position can experience larger interim swings — this is a deliberate choice suited to a diversified, position-capped portfolio, and, like all equity investing, it carries market risk.

9

Continuously re-tested against overfitting

Entry conditions are re-evaluated and stress-tested on an ongoing basis, so the system stays robust as markets change and does not merely "fit the past." The goal is a process that generalises to new conditions — not one tuned to look flattering on history.

What we measure

The portfolio, not the stock

We judge success by whether the whole portfolio compounds over time and against its benchmark — the Nifty 50 TRI, net of all costs — not by whether any single holding becomes a multibagger. A strategy of 30 position-capped names is meant to win as a portfolio, with winners more than paying for the inevitable losers. Every entry and exit stays on the record, winners beside losers.

Entry and exit conventions and cost assumptions are documented and fixed before publication, and retained for five years. A recommendation is never edited after the fact — if the view changes, we publish a superseding call and keep the original on the record.

This page explains our research process only. It is not personalised investment advice, and following the model portfolio is entirely your decision. Equity investing carries market risk, including the risk of loss; small-cap positions can be especially volatile. Past performance is not indicative of future results.

FAQ

Your questions on the process

Which stocks can the system pick from?
The universe is the EQ (rolling-settlement equity) series on the NSE — the mainstream, deliverable segment of the exchange — across the full market-cap spectrum, from large-caps to small-caps. Every eligible name is screened afresh each trading day.
When are signals sent, and how?
Signals are generated each trading day between 3:00 and 3:15 PM and delivered to subscribers by SMS, WhatsApp and email. The model assumes a position is taken the same day, before the market closes — so a subscriber who chooses to follow a call would act within that window. What you do with any signal is entirely your decision.
How is my capital split across stocks?
Equally. Whatever capital you set aside for the strategy is divided into 30 equal parts, so each position is about 1/30th (~3.3%) of the total — no name gets more, none gets less. For example, on ₹12,00,000 of allocated capital, each stock would be roughly ₹40,000. There is no separate minimum or maximum per stock beyond this equal-weight rule.
Will I always be fully invested?
No — and that is by design. The model holds cash whenever there aren't enough qualifying signals; it never manufactures a signal just to appear active. In a weak market you may be only partly deployed: on ₹12,00,000, if conditions justify only 20 positions, about ₹8,00,000 is invested and the remaining ₹4,00,000 simply stays in cash until better setups appear.
How long are stocks held, and how often does the portfolio change?
It is a continuous process. A typical holding lasts one to three months; within that, individual names enter and exit as their trends and market conditions evolve — but the portfolio holds a maximum of 30 open positions at any time.
Is there a stop-loss?
There is no fixed price stop-loss. Positions are held while momentum stays intact and exited on the system's signal when it fades. Because there is no hard stop, a single position can swing more in the interim — a deliberate choice balanced by holding a diversified, equal-weight, position-capped portfolio (see the process steps above).
What happens in a rare market crash?
The rule-based process is built for normal markets — which is the overwhelming majority of the time. Very occasionally a systemic shock moves markets in ways no rule can anticipate (in the last two decades, essentially 2008, 2020, and to a lesser degree 2026). In those rare, exceptional phases we stay agile — actively re-evaluating and adapting exposure, including moving further into cash, to protect capital as the situation unfolds. Discipline governs the ordinary; judgment is reserved for the rare extraordinary. No approach can eliminate market risk, but this is how we respond when it spikes.
Who is this for?
For investors who want their overall portfolio to grow over time and who judge success by the portfolio — not by whether one stock becomes a multibagger. It suits those comfortable with the normal ups and downs of equities and a one-to-three-month (and longer) horizon. It is not a tip service and not personalised advice; please assess your own risk appetite and suitability, or consult a registered Investment Adviser, before acting.
Do you focus on picking individual winners?
No. We measure success by the whole portfolio compounding over time and against the Nifty 50 TRI (net of costs). Winners are expected to more than pay for the inevitable losers, and every entry and exit — good and bad — stays on the record.
Is this investment advice?
No. Sanjeev Research is a SEBI-Registered Research Analyst. We publish research and a model portfolio to all subscribers alike; we do not give personalised advice, manage money, or execute trades. Every recommendation is non-binding — the decision to act is always yours.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.