Advanced
Practice Drills: Backtesting a Contrarian Sector Rotation Strategy
An advanced hands-on drill for building, stress-testing, and implementing a contrarian sector rotation strategy on Nifty sectoral indices. You will write a precise rulebook, assemble clean TRI data from niftyindices.com, code a monthly rotation backtest in Python without lookahead bias, net out Indian costs and capital gains tax, and then try hard to break your own result before a single rupee goes in.
Sector RotationContrarian InvestingMean ReversionBacktestingNifty Sectoral IndicesPython for Investing
MODULES
5
DURATION
4 Hours
TRACK
Stock Market Basics
What You'll Master
How mean reversion across Nifty sectoral indices can be turned into a testable contrarian rule
How to source and clean sectoral TRI data while handling launch dates and survivorship
How to rank sectors and generate monthly signals in Python without lookahead bias
How brokerage, STT, slippage, and STCG/LTCG tax change a rotation strategy's real return
How to judge a result with CAGR, drawdown, hit rate, and excess return over the Nifty 50 TRI
How to stress-test the edge across lookbacks and market regimes, including value traps
How to implement the strategy with sector ETFs and index funds, with sensible guardrails
Access Level
PRO
Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates
Curriculum Breakdown
The Contrarian Thesis Before the Code
2 Lessons▶
Why Losing Sectors Sometimes Win: Mean Reversion in Nifty Sectoral Indices10 min read
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Writing a Testable Rulebook: Universe, Lookback, Holding Period, Rebalance10 min read
Building the Sector Dataset
2 Lessons🔒
Sourcing Nifty Sectoral TRI Data from niftyindices.com10 min read
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Handling Index Launch Dates, Survivorship, and a Changing Universe10 min read
Coding the Rotation Backtest
3 Lessons🔒
Ranking Sectors and Generating Monthly Signals Without Lookahead12 min read
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Building the Strategy Return Series Against a Nifty 50 Benchmark11 min read
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Adding Costs, Slippage, and Indian Capital Gains Tax to the Equity Curve12 min read
Stress-Testing the Edge
3 Lessons🔒
Reading the Results: CAGR, Drawdown, Hit Rate, and Excess Return10 min read
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Parameter Sensitivity: Does the Edge Survive a Different Lookback?11 min read
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Regime Check: 2008, the 2020 Crash, and the Decade-Long PSU Bank Value Trap11 min read
From Backtest to Portfolio
3 Lessons🔒
Implementing with Sector ETFs and Index Funds on Zerodha10 min read
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Adding Guardrails: Value-Trap Filters, Position Caps, and Exit Rules10 min read
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Capstone Drill: Write Your Own Contrarian Rotation Report12 min read