Every investor has their own preferred investment. Two of the most popular choices are investing in funds such as ETF’s, Mutual Funds, or Hedge Funds, and self-investing using a strategy that you’ve either built yourself or adopted from a well-known investor. It’s finally time to figure out which choice has more potential.
To keep the whole process short we’ve taken a pool of random value investment funds and a pool of random value based screeners within Equities Lab and compared the returns.
Using Fund visualizer, we compiled a list of funds that focus on value investments. Before we read into the chart too much, it is worth noting that these returns do not include any sales charges or maintenance fees that would be charged by your typical fund.…
When I’m going through a testing process to check for a new update, my go to screen is “Close > 444”. This seems all fine and well, and will return companies that have a close greater than 444, but, believe it or not, this usage of “close” is incorrect.
Within the Equities Lab system, there are two types of close – Close, and RawClose.
· Close is the split adjusted closing price
· RawClose is the unadjusted closing price.
This differentiation is important when you are looking at a static line using close as a parameter.
When you first start screening and backtesting for companies you are going to be presented with a number of different variables that need to be decided. One such variable is the rebalance period. Think of a rebalance as the following.
– When a portfolio is rebalanced it is assumed that all positions within that portfolio are sold, and all companies that are returned by the screener are purchased at the same weight at the same time. This activity is portfolio wide and doesn’t include individual position management.
Within the Equities Lab system, you can adjust the rebalance period within the trading rules tab.…
The Stocks you pay for
The other day I wrote an article discussing my distaste for penny stocks and for how they are marketed as “the next big thing”, ruining thousands of people’s financial lives. Well, if you can’t invest in penny stocks, what can you invest in? How about we invest in stocks that, at an extremely basic level, are actually worth something?
Here is a list of companies that I would deem “investable stocks” Each of these companies is based on a simplistic screen that simply looks for a company that has a moderately high share price, growing net income, growing sales, a moderately high Piotroski score, and a moderately low P/E.…