Broad Accumulation — upside participation despite still-thin trend depth

Small caps posted a broad, low-volatility up day with sector-level rotation, but the move still looked like early repair rather than a fully rebuilt participation trend.

Quiet Distribution — flat close masking heavy internal slippage

Small caps finished flat on the index but saw a low-volatility, normal-dispersion down-day internally, with weakness broad-based and only small pockets holding up.

SmallCap Dislocations: A Quantitative Alpha Source Most NSE Small-Cap Funds Ignore

Indian small caps misprice during forced selling, not fundamentals. Using a day-by-day portfolio simulation, we tested a dislocation strategy that exploits liquidity shocks—64.8% win rate, −1.02 skew, and 3.1% max drawdown with strict risk controls.

Mean Reversion vs Trend Following in NSE Small-Caps: The Return Distribution Most Traders Ignore

Most NSE small-cap traders obsess over indicators. That’s a mistake. The real difference between mean reversion and trend following isn’t RSI or breakouts—it’s the return distribution you’re betting your capital and psychology on.

Early Risk Off — downside participation overwhelmed pockets of resilience

Small caps saw an early risk-off tape with heavy downside participation, limited sectoral shelter, and low-volatility selling that looked more like risk appetite fading than a stress event.

High Churn — flat close with mixed participation

A flat index close masked a mixed tape where IT-led pockets held up while cyclicals softened, keeping the session in a low-volatility churn rather than a clean risk-on or risk-off signal.

Quiet Distribution — flat close masking weak participation

A modest index uptick came with weak participation and low-volatility dispersion, leaving the day reading as quiet distribution rather than broad accumulation.

Exit Criteria That Actually Work in Small-Caps

We tested multiple exit models in a small-cap strategy and found that binary exits destroy value. A score-driven decay framework with hysteresis improved returns by 7.4pp, raised Sharpe, and cut turnover by 46%.

Low IC, High Sharpe: The Quant Paradox Most Factor Models Get Wrong

Most quants chase high IC factors. That’s a mistake. This article breaks down, with real numbers, how low-IC quality signals can outperform through volatility suppression, regime behavior, and correct portfolio construction.