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.
November 9, 2017

Investment Green Flag – Positive Operating Cash Flow over the Past Year

We’ve all heard the old trope that “Cash is King.” Well, in terms of a company it just might be. As part of our Green Flag score we have created a line that requires that a company have a positive operating cash flow over the past four quarters.

If you are unfamiliar with what operating cash flow is, it is exactly what the name suggests – cash flow from operations.

Each of our Green Flags must conform to a few rules to ensure that they are actually green flags in investors’ eyes. One such requirement is that a flag must have a win ratio of at least 50%.…

November 9, 2017

Run Backtests in the Background with Recent Backtests

Highlighting Recent Backtests

Even with advanced caching methods and multiple speed upgrades, highly complex screeners still take some time to run over the past 20 years. To combat the wait time – and allow you more freedom to analyze strategies and their underlying companies – we built the “Recent Backtest” section. This section will enable you to take screeners that may have a long runtime and send them to the background, thus, allowing you to move freely throughout the platform while you wait.

To send a screen to the recent backtest tab, you first need to run the test. While it is running, select “run in background”; once clicked, the above prompt will pop up.…