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u/sudeep213 10 hours ago Question

32yo make stock screener with backtest and immediately tries to ruin his childs inheritance

\>be me \>32 years old \> Make a Trendlyne stock screener with backtest \>brain.exe starts running \>Run the screener with annual rebalancing. \>Backtest it for 2 years. \~44% CAGR. \>Do it for 5 years. \~32% CAGR. \>11 years. \~20% CAGR. \>15 years. \~28% CAGR. \>20 years. Still roughly \~20% CAGR. \>At this point I'm suspicious. \>So I run another experiment. Instead of actually following the screener's sell signals, I just buy the stocks whenever it gives me and never sell them. Basically: \>buy stock \>hold \>forget screener ever existed 20 year CAGR drops from around 20% to roughly 17%. For prices as on date. Still pretty damn interesting. Then the brain damage begins. \>Me child is about to turn 3. \>Turns 18 in approximately 15 years. \>Open a demat account. Every year, take the stocks generated by the screener. Buy them. Transfer them to their demat account. Don't touch them. Let them sit there for 15 years. Child turns 18 and suddenly has a portfolio that has been compounding healthy Now I'm stuck between two approaches. Option A: ₹10,000 per stock × \~20 stocks/year ≈ ₹2 lakh/year. Over 15 years: ₹30 lakh invested. If the 17% CAGR somehow survives reality, the spreadsheet says roughly ₹75-80 lakh. Obviously I know backtests aren't reality. Option B: ₹5,000 per stock × \~20 stocks/year ≈ ₹1 lakh/year. Over 15 years: ₹15 lakh invested. At the same hypothetical 17%, roughly ₹35-40 lakh. And ₹1 lakh/year is actually money I can comfortably afford to lose. ₹2 lakh/year is possible, but I'd definitely feel it. So now I'm sitting here thinking: Do I YOLO ₹2 lakh/year into a backtested stock strategy because the historical numbers look amazing? Or Do I limit it to ₹1 lakh/year, treat it as a 15-year experiment, and consider anything the child gets at 18 a bonus? No trying to time the market. No "I'll invest when the market crashes." No checking whether NIFTY is up 2% today. Just: buy → transfer → forget → repeat for 15 years. Best thing about screener Discovered winner stocks like Cupid in 2016 Zensar in 2015,, refex in 2019, saksoft in 2020, stellant securities in 2024, magellnic cloud in 2022, vaibhav global in 2019, titan biotech in 2021, ,when stocks were small Also loser stocks max yuvraj hygeine, medico interconnect with over 70% loss and still manage to deliver good return over years.
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  1. u/AutoModerator moderator 1 10 hours ago
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