Alpha Trends are calculated by considering factors such as trend breakout in stock, trend of sector, high probability of profit, liquidity and derivatives trading availability. India Alpha Trends screens liquid large and mid-cap stocks for bullish signals.
Alpha Trends is available in two allocation styles, Portfolio and Dynamic. Portfolio Trends allocates equally to the selected trending stocks (minimum of 0 and maximum of 5), while Dynamic Trends allocates a fixed allocation of 20% to any specific trending stock and the remaining to cash. Portfolio Trends is a more aggressive investment profile, while Dynamic Trends offers a lower risk profile. Traders looking for leverage should consider Dynamic Alpha Trends, while those looking to hedge should consider Portfolio Alpha Trends.
The following chart shows the Allocation Profile of Portfolio Trends:
The following chart shows the Allocation Profile of Dynamic Trends:
In summary, once a high probability of profit trend signal is identified in a large-cap or mid-cap stock having derivatives, it is then allocated in Portfolio and Dynamic Alpha Trends as per their investment allocation profiles.