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    Aunali Rupani Sir's Strategy V2

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    VijayTooty

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    Aunali Rupani Sir's Strategy V2

    Uploaded by

    VijayTooty
    9 views4 pages

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    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    9 views4 pages

    Aunali Rupani Sir's Strategy V2

    Uploaded by

    VijayTooty

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Aunali Rupani Sir’s Trading Strategy

    1. Find stocks with ROCE > 50. What is ROCE? Below is a snapshot of the formula from
    strategiccfo.com.

    ROCE (Return on Capital Employed) Definition:

    ROCE stands for Return on Capital Employed; it is a financial ratio that determines a
    company’s profitability and the efficiency the capital is applied. A higher ROCE implies
    a more economical use of capital; the ROCE should be higher than the capital cost. If
    not, the company is less productive and inadequately building shareholder value.

    ROCE Formula:

    Use the following formula to calculate ROCE:

    ROCE = EBIT/Capital Employed.


    EBIT = Earnings Before Interest and Tax
    Capital Employed = Total Assets – Current Liabilities.

    Calculating Return on Capital Employed is a useful means of comparing profits across


    companies based on the amount of capital. It is insufficient to look at the EBIT alone
    to determine which company is a better investment. You also have to look at the
    capital and calculate the ROCE. Many consider ROCE a more reliable formula than
    ROE (Return on Equity) for calculating a company’s future earnings because current
    liabilities and expenses.

    2. How to find the stocks with ROCE > 50.

    Go to Screener.in and login. If you don’t have an account then sign up. Signing up is
    free.

    After logging in go to the Screens menu at the top right and then click on Add New
    Screener.

    Type Return on capital employed > 50 in the Query Edit Box and click on Run This
    Query button.
    After running the query, the output would look like…
    3. Download the volume and weighted average price data for each of the filtered
    stocks from NSE link
    https://www1.nseindia.com/products/content/equities/equities/eq_security.htm .

    4. To start with we will need to download at least one month or 3 weeks of price &
    volume data and keep appending price volume data thereafter on daily basis to
    calculate Running Price. Ideally we will need at least 21 days to maximum of 30 days
    of data to derive a realistic Running Price. The data table should look like the one
    below (*used screenshot from webinar). Set the Cumm Amt and Cumm Qty value to
    0 in the very first row of the table to begin with.

    Here are the data field details:


    Date: Date as in the NSE table
    Delivery Qty: Delivery Quantity as in the NSE table
    Average Price: VWAP price from the NSE table
    Weighted Average Amt: Delivery Qty * Average Price
    Cumm Amt: Cumulative Weighted Average Amt
    Cumm Qty: Cumulative Delivery Qty
    Running Price: Cumm Amt / Cumm Qty

    5. Strategy:

    Monitor any substantial volume breakout (substantial increase in Delivery Qty) and
    thereafter monitor the change in price.

    If Running Price > Average Price then it’s a Buy trade. The day, signal is generated,
    get ready to take trade the very next trading day.

    Wait for the LTP to cross the high of the first 45 minutes candle, PDH (Previous Day
    High) and PDL (Previous Day Low) to take entry.

    Add 20% of the total planned quantity in the beginning. Gradually add the remaining
    80% positions in the following days as the LTP increases. The quantity would depend
    on one’s individual capacity and risk appetite.

    Exit the trade when Running Price < Average Price or PDL is breached.

    Note: One should start experimenting with stocks ROCE > 50 in the beginning but
    can try with stocks ROCE > 20 with caution as one becomes comfortable with the
    strategy.

    6. Same process continues for all the selected stocks.

    Rupani Sir’s Support Team Contact: +91 98672 47992


    +91 98672 47994

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