Stock market investing can be difficult, especially given the wide range of accessible options. At ETF SuperStore, we provide an unique, smart method for stock and ETF investing in an effort to streamline this procedure. Welcome to ETF SuperStore Version 2, where we present our state-of-the-art 20 EMA calculation formula along with our innovative Dynamic Averaging technique. With the help of this combination, your investments will be optimized and your money will work faster for you.
Understanding ETFs
Investors have come to love Exchange-Traded Funds (ETFs) because of their flexibility and diversity. An ETF is a kind of investment fund that consists of bonds, equities, and other assets. It is traded, like individual equities, on stock markets. ETFs combine the finest features of stock trading convenience with the diversification of mutual funds.
The Requirement of a Strategy
Even though ETFs are naturally diversified, managing risks and maximizing returns still requires an organized approach. ETF SuperStore Version 2 is useful in this situation. We have created a strategy that not only capitalizes on market downturns but also efficiently averages down your investment cost using a precise algorithm.
Dynamic Averaging: The Core of ETF SuperStore V2
Our unique method, called Dynamic Averaging, lets you modify your investing strategy according to the state of the market and the volatility of the stocks. The volatility of the stock or ETF is taken into account by Dynamic Averaging, in contrast to classic averaging techniques that use a fixed percentage.
- Volatility Assessment: The first step is to assess the volatility of the stock or ETF. We categorize volatility into three levels:
- Low Volatility (<5%): Averaging at 2.5%
- Medium Volatility (5-50%): Averaging at 5%
- High Volatility (>50%): Averaging at 7%
- Adjustment to Investment Amount: In the event that the stock price falls below the predetermined barrier, we advise investing 20% more than your daily investment amount. By doing this, you can maximize your average cost by obtaining more shares at a reduced price.
- Averaging Buy Triggers: The first averaging buy occurs when the current market price (CMP) drops below the procured price by the dynamic average percentage. The second averaging buy happens if the CMP falls below twice the dynamic average percentage of the average procurement price and the price starts rising. This process continues, adjusting for further dips and subsequent recoveries.
Unique 20 EMA Calculation
Exponential Moving Average (EMA) is a powerful tool for investors, providing a weighted average of prices, giving more significance to recent data points. Our 20 EMA calculation formula is unique because it simplifies the process into a single line, making it accessible and easy to implement.
The Formula
We’ve developed a single-line formula that accurately calculates the 20 EMA and can be adapted for other periods like 10 EMA or 5 EMA. The formula ensures that your investment decisions are based on precise, up-to-date data, allowing you to make informed choices quickly. Google Sheet formula is as follows:
=LET(
stockCode, A3,
closingPrices, QUERY(SORT(GOOGLEFINANCE(stockCode, “close”, TODAY()-60, TODAY()), 1, 0), “SELECT Col2 WHERE Col2 IS NOT NULL LIMIT 20”, 0),
emaPeriod, MIN(20,ROWS(closingPrices)),
k, 2 / (emaPeriod + 1),
initialSMA, INDEX(closingPrices, emaPeriod),
emaValues, REDUCE(
initialSMA,
SEQUENCE(emaperiod,1,1,1),
LAMBDA(acc, i,
LET(
previousEMA, INDEX(acc, ROWS(acc)),
currentPrice, INDEX(closingPrices, emaPeriod-i + 1),
newEMA, currentPrice * k + previousEMA * (1 – k),
VSTACK(acc, newEMA)
)
)
),
INDEX(emaValues, ROWS(emaValues))
)
This formula is designed to handle variations in data availability, ensuring that you get an accurate EMA even if the stock data for the past 20 days is not fully available.
Implementing the Strategy
Our Google Sheet is fully automated, making it user-friendly and efficient. Here’s how to implement the strategy:
Daily Routine: Open the Google Sheet at 3 PM every day. The system will automatically recommend three stocks based on the lowest 20 EMA that are currently rising.
Buying Time: Buy the recommended stocks after 3 PM when the market tends to be more stable.
Selling Time: Sell the stocks before 3 PM to avoid end-of-day volatility and to ensure that your sell orders are executed within the trading day.
Recording Transactions: After executing your buy or sell transactions, promptly enter the details into the Purchase and Sale History sections of the sheet. This ensures that all data is up-to-date and accurate.
Stock Summary: The Stock Summary section will automatically update with the latest data from your Purchase and Sale History. This helps you determine the selling price or dynamic averaging price effectively.
Investment Strategy
The system calculates the per-stock investment amount based on the total fund you intend to invest. For example, if you plan to invest a maximum of 300,000 INR per month, and you are investing 15,000 INR daily, the system will guide you to invest an additional 20% during dips for better averaging.
By doing so, you ensure that your investment is not only diversified but also strategically positioned to take advantage of market movements. This method reduces the risk of investing at high prices and allows for better profit margins when the stock prices rebound.
ETF SuperStore Version 2 is a revolutionary approach to investing in ETFs and stocks. By incorporating Dynamic Averaging and our unique 20 EMA calculation formula, you can optimize your investments, manage risks, and maximize returns. Whether you’re new to investing or looking to refine your strategy, ETF SuperStore Version 2 offers the tools and insights you need to succeed in the stock market.
For more information and to stay updated with the latest investment strategies, visit our website at excelinlife365.com. Don’t forget to subscribe to our YouTube channel for regular tips and tutorials on mastering the art of investing.
Read More: Installation and Registration of BBS Plus
Frequently Asked Questions (FAQ) on ETF Superstore
The ETF SuperStore Google Sheet is a powerful and automated tool designed to help investors optimize their ETF and stock trading strategies. It uses advanced techniques such as the 20 EMA calculation and dynamic averaging to recommend the best buy and sell opportunities, maximizing your investment returns.
The 20 EMA (Exponential Moving Average) calculation in the ETF SuperStore uses a unique formula to provide accurate and real-time EMA values. By changing the EMA period, you can also derive other EMAs like the 10 EMA or 5 EMA. The formula is fully automated, making it easy to track and analyze trends for better trading decisions.
Dynamic averaging in the ETF SuperStore is a technique that adjusts the averaging percentage based on the volatility of the stock. For stocks with volatility less than 5%, the averaging occurs at 2.5%; for volatility between 5-50, it averages at 5%; and for volatility above 50, it averages at 7%. This approach ensures that you procure more stocks or ETFs at lower prices, improving your average purchase price and potential returns.
