Six systems, each published in full: what it buys, when it sells, how much it risks, and the market conditions in which it is designed to do badly. A framework you cannot reproduce is not a framework.
A defensive framework and a momentum framework are built for different regimes and different temperaments. Most investors should use at most two.
Concentrated ownership of high-return businesses with reinvestment runway, held through volatility unless the thesis breaks.
Monthly rotation into the strongest relative-strength cohort, with a volatility filter and a hard regime switch to cash.
Businesses trading below replacement value where a specific, identifiable catalyst can close the gap.
Cash-generative businesses with durable payout capacity, built for lower volatility rather than maximum return.
Defined-catalyst situations — results, demergers, capital raises, regulatory decisions — with pre-set exit dates.
Defined-risk option structures that harvest volatility premium with capped downside on every leg.
Performance curves below use clearly labelled sample data to illustrate the shape each framework is designed to produce. They are not a performance record and must not be read as one.
Indexed to 100 at period start. Sample data for design illustration only.
| Framework | Category | Horizon | Risk | Universe | Positions |
|---|---|---|---|---|---|
| Core Compounders | Long horizon | 3–5 years | Moderate | Nifty 200 | 12–18 |
| Momentum Rotation | Systematic | 1–3 months | High | Nifty 500 liquid | 15–20 |
| Value Recovery | Contrarian | 12–24 months | Moderate-high | Mid & smallcap | 10–15 |
| Income & Quality | Defensive | 2–4 years | Low | Largecap + REIT/InvIT | 14–20 |
| Event Driven | Tactical | 2–12 weeks | High | All-cap, liquid | 5–10 |
| Hedged Carry | Derivatives | Monthly series | Moderate | Index & F&O stocks | 3–6 |
Universe, logic, risk approach and intended use — the same structure for every system so they can be compared honestly.
Concentrated ownership of high-return businesses with reinvestment runway, held through volatility unless the thesis breaks.
Screens for sustained return on capital, low accounting risk and a reinvestment opportunity larger than current asset base. Entry is valuation-aware but not valuation-timed; exits are thesis-driven.
Maximum loss per position is fixed at entry and total exposure is capped by a documented drawdown budget. The framework is designed to underperform in the conditions named below — that is a stated feature, not an unexpected outcome.
Sample data. Not a performance record.
Monthly rotation into the strongest relative-strength cohort, with a volatility filter and a hard regime switch to cash.
Ranks the liquid universe on 3/6/12-month relative strength, filters for realised volatility and turnover, rebalances monthly. Exits entirely to cash when the index closes below its long-term trend filter.
Maximum loss per position is fixed at entry and total exposure is capped by a documented drawdown budget. The framework is designed to underperform in the conditions named below — that is a stated feature, not an unexpected outcome.
Sample data. Not a performance record.
Businesses trading below replacement value where a specific, identifiable catalyst can close the gap.
Requires an asset-based or normalised-earnings floor plus a named catalyst with a timeline. Positions are sized smaller and staged, because value without a catalyst is just a long wait.
Maximum loss per position is fixed at entry and total exposure is capped by a documented drawdown budget. The framework is designed to underperform in the conditions named below — that is a stated feature, not an unexpected outcome.
Sample data. Not a performance record.
Cash-generative businesses with durable payout capacity, built for lower volatility rather than maximum return.
Screens for free-cash-flow cover of distributions, balance-sheet strength and earnings stability across cycles. Explicitly accepts lower upside in exchange for shallower drawdowns.
Maximum loss per position is fixed at entry and total exposure is capped by a documented drawdown budget. The framework is designed to underperform in the conditions named below — that is a stated feature, not an unexpected outcome.
Sample data. Not a performance record.
Defined-catalyst situations — results, demergers, capital raises, regulatory decisions — with pre-set exit dates.
Every position has a dated catalyst and a pre-committed exit whether the catalyst resolves favourably or not. No position is held past its event window on hope.
Maximum loss per position is fixed at entry and total exposure is capped by a documented drawdown budget. The framework is designed to underperform in the conditions named below — that is a stated feature, not an unexpected outcome.
Sample data. Not a performance record.
Defined-risk option structures that harvest volatility premium with capped downside on every leg.
Only structures where maximum loss is known at entry. Sizing is set from worst-case loss, not from margin. Positions are closed on a rules-based profit target or at series expiry.
Maximum loss per position is fixed at entry and total exposure is capped by a documented drawdown budget. The framework is designed to underperform in the conditions named below — that is a stated feature, not an unexpected outcome.
Sample data. Not a performance record.
A rule set that has not survived these is an idea, not a framework.
A stated economic or behavioural reason the edge should exist. If we cannot explain why it works, we assume it does not and that we have found noise.
Universe, entry, exit, sizing, rebalance frequency and maximum concurrent exposure — written before any historical testing begins.
Tested against the worst regimes in the available history, including the ones the hypothesis says it should fail in. A framework that never fails has been overfitted.
A maximum drawdown allowance is set. Breaching it triggers a published review of the framework, not a quiet parameter change.
The complete rule set is published to subscribers. Every subsequent parameter change is documented and dated, and the original specification stays online.
Live behaviour is compared against expected behaviour each quarter. Divergence is written up whether it is favourable or not.
Professional subscribers get every framework specification in full — universe definition, exact entry and exit logic, sizing rules and drawdown budget.
Research is educational and informational. It is not personalised investment advice.
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Research
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SEBI Registered Research Analyst · INH000027478. Research is educational and is not personalised investment advice.
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