Falcon

Falcon is a long term based investment strategy that calculates intrinsic values of profit making companies.

The algo uses inputs from P/E multiples to calculate IVs based on statistical models of standard deviation. Not only does this strategy help in finding avenues for investment but also acts as reference for existing investments. As this strategy calculates only intrinsic values no stop loss or targets are calculated.

However, this strategy leads to investment avenues which are low on the risk profile and lead to high yield results in the long term.

We recommend a holding period of atleast 8 months for this strategy.

How to Trade?

1. Purchase of equity can be done when the current price is less than intrinsic value.

2. It's recommended that a margin of safety is maintained wherein the current price must be less than the intrinsic value by a sizable difference.

3. Partial exits must be made when the stock rallies.

4. Holding time must at least be 8 months.

5. Dividends and bonuses must also be calculated as returns.

6. If the company announces a buy back or rights issue, it is recommended that investors participate.