Transcript of #AMA hosted by @AshishGupta325 - 3rd Apr 2022

@AshishGupta325 where did you get the idea for the show ?

Alex Konanykhin’s television series https://unicornhunters.com/ a television show mixes entertainment with the potential for consumers to back select pre-IPO investment opportunities

& the name of the #watanabeshow is inspired by

Popular tales of "Mrs Watanabe" - the canny Tokyo housewife who dabbles in currency trading in between school runs and shopping - barely begin to tell the story of Japan's retail traders in the foreign exchange market.

Pranav: Hi Kora, For someone who has a math background but is weak in statistics, what books would you recommend if any?

Statistics without Tears: An Introduction for Non-Mathematicians Paperback – 24 July 2018 → https://www.amazon.in/Statistics-without-Tears-Introduction-Non-Mathematicians/dp/0141987499

Prathmesh M: are you going to provide training starting from basic to advance to all participants?

yes some basic stuff , which you can find in the

Farhan Syed: Query: Suppose one is following a 3 factor model with a Value score, momentum score and quality score on a 1 to hundred basis.

How to create a Z score out of that?

It could be any othe 3 or more factor model with a scoring system and how to create Z score out of same?

Please find the answer in the excel sheet at the blog below

Priyanka Gowda: In stocks portfolio how much % should be allocated btw large cap, midcap and small cap sector

Follow NSE Market Capitalization weight which is the easiest method, if you can't do mean variance optimization / or if you can't apply statistical techniques like Mahalanobis Distance on your own

Priyanka Gowda: My capital is 5 lakhs can you calculate for that ?

Please find the answer in the excel sheet at the blog below

Farhan Syed: You have purchased some stocks from your insider buy portfolio, is there and absolute stop loss or relative stop loss/ exit criteria for those stocks?

No stop loss there , personally I don’t recommend stop loss , as my max risk / allocation on 200K portfolio in each stock is about 2000

Gaurav Shekhawat: Kora can you talk about the insider buy portfolio idea?

this is very old idea from academic research "Predictive and Statistical Properties of Insider Trading"

you can find all insider buys here -> https://www.bseindia.com/corporates/Insider_Trading_new.aspx?expandable=2

Pranav: Do you have any preferred way of segregating regimes based on vol... to avoid situations like the recent months where the market was going crazy. I dont want to avoid selling vol, because SSO IV's were high at the same time.

Total Nifty Returns in points since 2018 : 7235

Returns During High Vol Regime : 230.55

Returns During Low Vol Regime: 7004.35

Point is entire Nifty returns since 2018 came during Low Vol Regime , so stay away from markets during the High Vol Regime

Please find the supporting answer in the excel sheet at the blog below

The show recording can be found here

The accompanying excel

Ama Session 3 Apr 2022

126KB ∙ XLSX File

Download

Download