Understand the principles behind successful rule-based investing. Explore technical indicators, portfolio construction, risk management, performance metrics, corporate actions, stop-loss mechanisms, and other concepts that help you design better investment strategies.
6 articles
What the indicators behind a NiveshBuddy strategy actually measure — moving averages, rate of change, Super Trend and the 52-week high filter — where volume fits, and why each condition you add costs more than it looks.
Momentum, trend-following, breakout and long-horizon approaches are not settings you switch on — they are patterns that emerge from the controls you choose. What each is built from, how responsive each is, where each tends to struggle, and why none of them wins.
Why a strong historical return is not evidence, how curve fitting produces strategies that only ever worked on paper, and the design choices that make a rule set likely to survive conditions it was not built on.
Every exit rule answers the same question: what evidence would show the original idea was wrong? A stop loss answers it with price. What each of the two kinds measures, how an end-of-day model actually executes them, and the specific things neither can promise.
A bonus issue can halve a share price overnight without anyone losing a rupee. What corporate actions are, why they corrupt historical price data if left alone, and how NiveshBuddy handles them — adjusted data in a backtest, restated holdings or a clean exit in a simulation.
A backtest hands you about sixteen numbers, and they answer four different questions — how much a strategy made, how painful the journey was, what the returns cost in risk, and how the strategy actually behaved. Reading them together is the skill.
