May 27, 2020

Creating long short portfolios

Creating Long Short Portfolios in Equities Lab

Shorting stocks is hard to do profitably. Very hard. That said, adding a short component to portfolios can reduce drawdown. Long/Short portfolios are also useful to see if factors are important for good investment performance.

Using the islongshort macro

To model a long/short portfolio with maximum control, use the islongshort macro.…

February 20, 2020
CAPM Explained

February 2020 Release notes

We are proud to announce a new release of Equities Lab. We have a ton of new features, including some changes that might affect your current screens. Some of the highlights include more ADRs, new macro economic properties, and a fully functional stock simulator.
January 15, 2020

A Trail of Screenshots: Filtering and Ranking

These screenshots will start embarrassingly simple, and get more elaborate.  So stay tuned…
First, lets find large companies!

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Now, within that set of companies we want to find companies with decent valuation:

That’s nice, but we have some companies with really tiny PE values:

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Let’s filter them out (using add term on the <, and dragging and dropping the terms):

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This is nice, but where did I get those 3 and 12 from. …

July 28, 2019

Net Income Verses Free Cash Flow

Show me the money

People look at net income, otherwise known as just earnings, as well as Free Cash Flow to decide whether they like a company. Why? Net income is the “real” income the firm makes, but it has one weakness: it doesn’t actually track money coming into (or out of) the firm.…

February 11, 2019

A Fond Farewell for Tyler McCain

Tyler has worked with us for about 4 years: doing anything that needed doing. From testing (tedious but critical) to creating new strategies that manage risk and optimize returns, to writing articles (137 of them!), handling customer issues and more. He has also created much of the course work that students use to learn investing, including the Equities Lab 101 course on every account.…

October 5, 2018

Changing the Benchmark

Equities Lab

Learn how to benchmark your strategy versus various benchmarks, ranging from indexes, to stocks and other strategies.

Imagine you have a large cap screen

Imagine you have a large cap screen Cutting to the chase, imagine you have a simple screen that finds reasonable large cap companies.  That screen is literally

Cutting to the chase, imagine you have a simple screen that finds reasonable large cap companies.  That screen is literally “import ohlson_o_score < -3 and mc > 10b”

Click on “® B 9”

Click on ” src=”https://www.equitieslab.com/wp-content/uploads/2018/10/e59du_2.jpg”

June 20, 2018
Why Death Crosses Don't Work

Death Crosses Don’t Work

OK, what is a death cross, and what do I mean by “it doesn’t work”? A death cross is a (very) vivid name for a short term moving average slipping below a longer term moving average.  Technical analysts love to sell when they see death crosses, and buy when they see golden crosses.…

March 26, 2018
Using Monte Carlo with Piotroski

How To Use Monte Carlo With The Piotroski Score

Henry Crutcher

How to analyze a factor without ranking in Equities Lab

Create a screen

Everything starts with creating a screen.  So, onward!

Name your screen

Screeners with names can be found later.  If you want to put your screens into categories, simply put MyCoolCategory: at the front.

Limit your stocks

You can type “Market Cap > 500m” here.  

March 2, 2018
This how-to shows how to create a strategy in Equities Lab, and how to do some basic analysis of it. For humor value, we take the point of view of a children's book character, named Amelia Bedelia, who has no common sense. We have all felt this way some times.

The Amelia Bedelia Mutual Fund

This how-to shows how to create a strategy in Equities Lab, and how to do some basic analysis of it. For humor value, we take the point of view of a children’s book character, named Amelia Bedelia, who has no common sense. We have all felt this way sometimes.

Create A Screener

A quantitative mutual fund is a screener.  

January 16, 2018
A lesson on absolute prices versus relative ones

Can’t Compare Close or EPS to a Number

A lesson on absolute prices versus relative ones

You’ve been referred to this page by something saying “You can’t (or shouldn’t) use Close > 5.00” in a stock screener. 

Imagine you are looking at a share of GoodStock (yeah, I know that’s a lame name for a fake stock!).  It goes up and up, and up! …