December 4, 2018

Who’s Betting on Blockchain? – the Thousand Year Article

With all the hype surrounding Bitcoin in recent years due to price fluctuations, it’s been hard to ignore. You hear about it on business news, you read about it on your Twitter feed, and then you hear the word “blockchain”.

Blockchain is essentially the technological architecture that supports Bitcoin, but it holds far more potential than just that.

October 23, 2018

Financial Valuation: Gordon Growth Model

The Gordon Growth model is an offshoot of the standard dividend discount model. This model is used primarily to calculate the intrinsic value of a firm based on the discounted value of future dividends.

The Equation

At a basic level the Gordon Growth Model is calculated by:

P = D1 / r-g

  • P = The intrinsic price you should pay for the firm
  • D1 = The dividend for the next period
  • R = The current discount rate, for our purposes we will use the CAPM for this
  • G = Is the dividend growth rate

Applying the Gordon Growth Model

So, we know how this is calculated if you are doing this on a sheet of paper, and if you don’t have the data there may be some pieces of information that you need to assume.…
October 16, 2018

CAPM – Capital Asset Pricing Model

CAPM – Capital Asset Pricing Model

The CAPM is a staple of most every finance course that focuses on the valuation of equity investments. And though it may be a very good way to begin the process of teaching students how to effectively analyze securities there are a lot of assumptions that make it very difficult to use in a real world setting.…

September 19, 2018

What happens to AAPL when they release a new iPhone?

Whenever I’m speaking to people about AAPL they tend to ask the same question. Apple just released a new phone, should I buy into their stock now since there will be an influx of sales? The gut reaction I, and many other people within the industry have, is that the future sales are already baked into the share price.…

August 15, 2018

Equities Lab vs. Gurufocus: Which Backtest Software


This article pits Equities Lab and Gurufocus against each other, to determine which one deserves the individual investor’s loyalty. This is simple, once the criteria for a “good” backtesting tool is specified. states that backtesting is “the process of testing a trading strategy on relevant historical data to ensure its viability before the trader risk any actual capital.…

June 20, 2018

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.…

June 6, 2018

F-Score and Equity Short-Term Reversals

Quantpedia Strategies

As I was recently looking around at other quantitative firms, I happened across Quantpedia. In the past we’ve spoken to Quantpedia and are actually featured on their website. However, this time around I was taking a look in their screener section and came across the “F-score and Equity short-term reversals”.…

May 18, 2018

Portfolio123 Alternative: Equities Lab Backtester

Portfolio123 has increased their prices, is it time to change?

With the recent price increase in the services provided by Portfolio123, it has come to light that many users of their service may be looking for alternatives. We’ve been getting a number of calls these past couple of days from disgruntled users, and we have decided to write out the comparisons between Portfolio123 and Equities Lab here.…

April 24, 2018

Active vs. Passive Investing

What is Active and Passive Investing?

To figure out which of these methods fit our investing needs, we first need to understand exactly what they are. Passive investing is assuming that the general market is efficient and that picking your own companies is pointless. Investments typically come in the form of index funds. …

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.  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.  

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