March 26, 2018

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. Kånken Rucksac online  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 (marketcap)

You can type “Market Cap > 500m” here.  You could alternatively type “mc > 500m”, keying on the capital letters.  Or you could type “>”, hit return and fill in both boxes, one with marketcap and the other with 500m.  Of course your assignment has you using a different cutoff, but that’s your problem 🙂

Add a new line

You can add lines by doing any of the following:

1.

March 2, 2018

The Amelia Bedelia Mutual Fund

Henry Crutcher

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.

Create A Screener

A quantitative mutual fund is a screener.  We are channelling our inner Amelia Bedelia.  She is a character in a series of children’s books that is totally lacking common sense.  This makes these books great to read aloud, assuming you can stop laughing long enough to actually read.

February 13, 2018

There’s been a Market Correction, Should you be Worried?

Should you be Scared of the Dow’s 1700 point drop

On the fifth of February 2018 the Dow Jones Industrial Average saw its largest single day drop in history. This drop coming off a market sell-off at the end of January has caused many investors to call for the start of a bear market. Are these claims well founded, or just good headlines?

Firstly, dollar amounts are likely the worst way to look at market changes as they skew the data. In 1929 the Dow fell from around 300 to 230. A 70 point move means nothing in today’s market environment.…

January 29, 2018

Artificial Intelligence: Industries Facing Impact

   Artificial intelligence was once only seen in Hollywood Sci-Fi films, but that narrative is quickly changing. Society is progressively becoming closer with AI, as it is used in things we interact with every day where we may not even realize it. Whether it’s with your Amazon Alexa, Siri, or even Google Maps on your commute which uses anonymized location data from smartphones, AI has an increasing presence to make simple tasks much easier. So, what even is artificial intelligence and which industries will it have the greatest impact on? Artificial Intelligence allows machines to learn from experiences, adjust to new inputs and perform human-like tasks.…

January 23, 2018

Importing Assignments – University Series

Sometimes it’s better to not reinvent the wheel. A number of our existing professors have allowed a few of their class assignments to be publicly available to other professors. You can import these assignments into your class environment and either use them as-is or change them to follow your syllabus. To do this simply follow the guide below – 

1. Click on “Import/Copy Homework”


2. Choose a homework to import into your class

Not all homeworks created within Equities Lab are placed into our imports section. A few of our professors have graciously allowed us to use a few of their homework creations within the section – giving you a number of different assignments to import from a number of different universities.

January 23, 2018

Testing your homework assignments – University Series

Not all homework assignments are created equal. Courses get more difficult as time goes on, and as you push your students to not only understand the material but also implement what they’ve learned into real-world simulations some homeworks may become too complex for the standard user to successfully complete. 

In order to combat this we allow professors, like you, to try the homework assignments before they are assigned. This ensures that the homework assignments can be completed before they are given to the students.

1. Click on the homework you would like to test

As a professor you are given both the ability to create homeworks from scratch as well as test those homeworks out to identify any possible problems your students may have.

January 23, 2018

Creating your first class and homework – University Series

So you’ve just downloaded Equities Lab and are ready to set up your account for the class you’re teaching next semester. To successfully do this just follow the below steps –

1. Navigate to Account Settings

 

2. Click on “Create Course”

 

3. Name your course following the rules

 

4. Click on “Create new homework”

 

5. Name your homework

There are no rules to naming homeworks, but you should name it something that fits into the flow of your course.

6. Edit Passing Requirements

 

There are a wide range of editable fields within the homework environment. You can set a minimum/maximum standard deviation, monthly return, beta, drawdown, etc.…

January 16, 2018

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!  If it follows the example of Berkshire Hathaway, it soon sports a 5 or 6 digit closing price, and people can’t buy the stock.  So, it splits, and splits again.  On the other hand, BadStock starts at $10, and soon enough it has a price less than a dollar. …

December 1, 2017

An Educational Look at Apple (AAPL)

Analyzing Apple

An Apple by itself

Is Apple a stock worth buying? Other people have discussed (at length) its “questionable” product decisions, such as:

  • The touch bar
  • getting rid of Touch Id in favor of using facial recognition
  • Scrapping a whole ecosystem of connectors to push the “Lightning cable”
  • Eliminating the headphone jack from the newest generation of phones.

Beyond those product decisions, how does Apple, the company, perform from a quantitative point of view? What do the financials illustrate, and what should investors’ next course of action be??

To do this effectively the company must be broken up into four individual parts:

  1. Income statement – Earnings, to profit margins, revenue, expenses, etc
  2. Balance sheet – Does it have too many liabilities?
November 20, 2017

Investment Green Flags – High Cash Flow Score

Now, this flag looks incredibly simple, but whenever you see orange text in Equities Lab, it means that there is a deeper formula to explore. Clicking on that formula we are presented with the following –

Though the flag itself is simple, the underlying formula is not. Understanding and analyzing cash flow statements takes time. Thankfully, we can do it easily here by importing the Cash Flow Score – a number from 0 to 10 based on the above metrics. For each line that is true for a company, it will score 1 point. The lines look for the following –

  • A company must be ranked in the bottom 35% of all companies within their sector for (total debt 1Q/free cash flow t12m) and free cash flow MUST be a positive number.