Breakout coming strong

Expected - 100%+ per year in bull markets and be in less exposure if bear markets and always in strong Will refine more based on nifty moving avg 📘 MOMENTUM RULEBOOK (FINAL – A to Z) A. ENTRY SCREENER Up from 52w low > 30 AND < 150 Current price > DMA 50 DMA 50 > DMA 200 Down from 52w high < 5 Current price < 1.12 * DMA 50 Market Capitalization > 1000 AND < 20000 ROIC > 15 Dividend yield < 3 B. POST-SCREENER CHECKLIST 1. Tight consolidation (2–4 weeks), small candles 2. Near breakout or clean breakout (not vertical spike) 3. Smooth trend (higher highs & higher lows) 4. Low volume in base, high volume on breakout → All 4 must be satisfied = BUY → Any doubt = SKIP C. SELECTION RULE If more stocks than needed: Score each stock (1 point each): - Tight consolidation - Closest to breakout - Smoothest trend - Volume support → Rank all → Pick top required (e.g., 3 out of 8) D. PORTFOLIO RULES Max 10 stocks Do NOT add beyond 10 Only replace Do NOT replace strong stocks Replace only weakest E. MARKET EXPOSURE MODEL 15+ stocks → 200% exposure 10–15 → 150% exposure 5–10 → 100% exposure 2–5 → 50% exposure 0–2 → 20% exposure Exposure = total capital invested Example: Capital ₹10L, Exposure 20% → Invest ₹2L → Keep ₹8L cash Position sizing: Divide invested capital equally Example: ₹2L invested, 5 stocks → ₹40k per stock F. EXIT RULES 1. INITIAL STOP Close ≤ Buy Price * 0.92 (-8%) → EXIT 2. TREND EXIT Close below 50 DMA for 2 consecutive days → EXIT 3. PROFIT PROTECTION Activate when Profit ≥ 20% Exit if Close ≤ Peak * 0.88 (-12% from peak) for 2 consecutive days 4. SHARP DAMAGE Fall ≥ 10% in 1–2 days → EXIT immediately 5. GAP DOWN RULE Gap down ≥ 10% → EXIT immediately Gap down ≥ 8% AND below 50 DMA → EXIT G. PRIORITY RULE Whichever condition triggers FIRST → EXIT H. REPLACEMENT RULE Replace only when: - Exit triggered OR - Stock weak (sideways 3–4 weeks) Replace weakest with strongest new I. WHAT NOT TO DO No overtrading No daily rotation No emotional exits No adding beyond limit No rule changes mid-cycle J. EXECUTION PHILOSOPHY Follow system strictly Accept false exits Hold winners Cut losses fast Let system control exposure FINAL LINE: Find strong → Pick best → Hold winners → Cut weak → Repeat

by ketan