Why does past rank ever change?

  • Creating long short portfolios

    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…

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  • Factor Analysis

    Factor backtesting in Equities Lab is easy, and revealing.  Here we analyze the factor total assets / sales, chosen at random because it is late at night when I wrote this article:-). We see that fewer assets are better:  the two best performing quintiles are the lowest ones.  If you like numbers better than pretty…

    Read More…

  • Changing the Benchmark

    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 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…

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  • How to use ranking

    How to use ranking

    Intuitively, most investors would assume that consistent growth in free cash flow within a company, would result in a high performing stock. Well today we’re going to test out that theory with the “Free Cash Flow Growth Leaders Stock Screener”. With this screener, we’re looking for: · Large and stable companies; companies that have a…

    Read More…

  • Guys, you’re being too selective with your screener

    Guys, you’re being too selective with your screener

    It isn’t uncommon for one of our users to call us up and ask for help. There have even been times when I will help a client at their site to get them up and running, along with follow-up information. In the past two years of working in this industry, I have noticed one major…

    Read More…

  • Creating Your Own Score

    Creating Your Own Score

    Most anytime we analyze a company or build a screen; we use a number of scores that are pre-built in the Equities Lab system. These scores are tried and tested, but they lack that personal touch. I think it’s time we learned how to build our own scores within the software.…

    Read More…

  • Survivorship Bias – How does it work?

    Survivorship Bias – How does it work?

    I was recently lurking around an online investment forum when the following post came up related to survivorship bias – “I recently ran an experiment where I generated random 7 to 50-stock portfolios from the 500 largest U.S. traded companies and measured their performance over the past 10 years. All of the randomly selected portfolios…

    Read More…

  • Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation As investors, we all know that each investment we make comes with a certain amount of risk. We can decrease this risk by understanding all possible outcomes just like at the buffalo lightning slot game. Better yet, we can visualize each outcome through the use of a Monte Carlo Simulation.…

    Read More…

  • Simulating a Short Strategy

    Simulating a Short Strategy

    Shorting in Equities Lab Before, if you wanted to test out a short strategy, you’d have to run your screen and hope that it loses money. That’s now changed thanks to our new “position_weights” feature where you are able to finally simulate a short strategy more closely and identify if your strategy really does make…

    Read More…

Creating long short portfolios

  • Factor Analysis

    Factor backtesting in Equities Lab is easy, and revealing.  Here we analyze the factor total assets / sales, chosen at random because it is late at night when I wrote this article:-). We see that fewer assets are better:  the two best performing quintiles are the lowest ones.  If you like numbers better than pretty…

    Read More…

  • Changing the Benchmark

    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 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…

    Read More…

  • How to use ranking

    How to use ranking

    Intuitively, most investors would assume that consistent growth in free cash flow within a company, would result in a high performing stock. Well today we’re going to test out that theory with the “Free Cash Flow Growth Leaders Stock Screener”. With this screener, we’re looking for: · Large and stable companies; companies that have a…

    Read More…

  • Guys, you’re being too selective with your screener

    Guys, you’re being too selective with your screener

    It isn’t uncommon for one of our users to call us up and ask for help. There have even been times when I will help a client at their site to get them up and running, along with follow-up information. In the past two years of working in this industry, I have noticed one major…

    Read More…

  • Creating Your Own Score

    Creating Your Own Score

    Most anytime we analyze a company or build a screen; we use a number of scores that are pre-built in the Equities Lab system. These scores are tried and tested, but they lack that personal touch. I think it’s time we learned how to build our own scores within the software.…

    Read More…

  • Survivorship Bias – How does it work?

    Survivorship Bias – How does it work?

    I was recently lurking around an online investment forum when the following post came up related to survivorship bias – “I recently ran an experiment where I generated random 7 to 50-stock portfolios from the 500 largest U.S. traded companies and measured their performance over the past 10 years. All of the randomly selected portfolios…

    Read More…

  • Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation As investors, we all know that each investment we make comes with a certain amount of risk. We can decrease this risk by understanding all possible outcomes just like at the buffalo lightning slot game. Better yet, we can visualize each outcome through the use of a Monte Carlo Simulation.…

    Read More…

  • Simulating a Short Strategy

    Simulating a Short Strategy

    Shorting in Equities Lab Before, if you wanted to test out a short strategy, you’d have to run your screen and hope that it loses money. That’s now changed thanks to our new “position_weights” feature where you are able to finally simulate a short strategy more closely and identify if your strategy really does make…

    Read More…

Factor Analysis

  • Changing the Benchmark

    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 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…

    Read More…

  • How to use ranking

    How to use ranking

    Intuitively, most investors would assume that consistent growth in free cash flow within a company, would result in a high performing stock. Well today we’re going to test out that theory with the “Free Cash Flow Growth Leaders Stock Screener”. With this screener, we’re looking for: · Large and stable companies; companies that have a…

    Read More…

  • Guys, you’re being too selective with your screener

    Guys, you’re being too selective with your screener

    It isn’t uncommon for one of our users to call us up and ask for help. There have even been times when I will help a client at their site to get them up and running, along with follow-up information. In the past two years of working in this industry, I have noticed one major…

    Read More…

  • Creating Your Own Score

    Creating Your Own Score

    Most anytime we analyze a company or build a screen; we use a number of scores that are pre-built in the Equities Lab system. These scores are tried and tested, but they lack that personal touch. I think it’s time we learned how to build our own scores within the software.…

    Read More…

  • Survivorship Bias – How does it work?

    Survivorship Bias – How does it work?

    I was recently lurking around an online investment forum when the following post came up related to survivorship bias – “I recently ran an experiment where I generated random 7 to 50-stock portfolios from the 500 largest U.S. traded companies and measured their performance over the past 10 years. All of the randomly selected portfolios…

    Read More…

  • Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation As investors, we all know that each investment we make comes with a certain amount of risk. We can decrease this risk by understanding all possible outcomes just like at the buffalo lightning slot game. Better yet, we can visualize each outcome through the use of a Monte Carlo Simulation.…

    Read More…

  • Simulating a Short Strategy

    Simulating a Short Strategy

    Shorting in Equities Lab Before, if you wanted to test out a short strategy, you’d have to run your screen and hope that it loses money. That’s now changed thanks to our new “position_weights” feature where you are able to finally simulate a short strategy more closely and identify if your strategy really does make…

    Read More…

Changing the Benchmark

  • How to use ranking

    How to use ranking

    Intuitively, most investors would assume that consistent growth in free cash flow within a company, would result in a high performing stock. Well today we’re going to test out that theory with the “Free Cash Flow Growth Leaders Stock Screener”. With this screener, we’re looking for: · Large and stable companies; companies that have a…

    Read More…

  • Guys, you’re being too selective with your screener

    Guys, you’re being too selective with your screener

    It isn’t uncommon for one of our users to call us up and ask for help. There have even been times when I will help a client at their site to get them up and running, along with follow-up information. In the past two years of working in this industry, I have noticed one major…

    Read More…

  • Creating Your Own Score

    Creating Your Own Score

    Most anytime we analyze a company or build a screen; we use a number of scores that are pre-built in the Equities Lab system. These scores are tried and tested, but they lack that personal touch. I think it’s time we learned how to build our own scores within the software.…

    Read More…

  • Survivorship Bias – How does it work?

    Survivorship Bias – How does it work?

    I was recently lurking around an online investment forum when the following post came up related to survivorship bias – “I recently ran an experiment where I generated random 7 to 50-stock portfolios from the 500 largest U.S. traded companies and measured their performance over the past 10 years. All of the randomly selected portfolios…

    Read More…

  • Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation As investors, we all know that each investment we make comes with a certain amount of risk. We can decrease this risk by understanding all possible outcomes just like at the buffalo lightning slot game. Better yet, we can visualize each outcome through the use of a Monte Carlo Simulation.…

    Read More…

  • Simulating a Short Strategy

    Simulating a Short Strategy

    Shorting in Equities Lab Before, if you wanted to test out a short strategy, you’d have to run your screen and hope that it loses money. That’s now changed thanks to our new “position_weights” feature where you are able to finally simulate a short strategy more closely and identify if your strategy really does make…

    Read More…

How to use ranking

  • Guys, you’re being too selective with your screener

    Guys, you’re being too selective with your screener

    It isn’t uncommon for one of our users to call us up and ask for help. There have even been times when I will help a client at their site to get them up and running, along with follow-up information. In the past two years of working in this industry, I have noticed one major…

    Read More…

  • Creating Your Own Score

    Creating Your Own Score

    Most anytime we analyze a company or build a screen; we use a number of scores that are pre-built in the Equities Lab system. These scores are tried and tested, but they lack that personal touch. I think it’s time we learned how to build our own scores within the software.…

    Read More…

  • Survivorship Bias – How does it work?

    Survivorship Bias – How does it work?

    I was recently lurking around an online investment forum when the following post came up related to survivorship bias – “I recently ran an experiment where I generated random 7 to 50-stock portfolios from the 500 largest U.S. traded companies and measured their performance over the past 10 years. All of the randomly selected portfolios…

    Read More…

  • Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation As investors, we all know that each investment we make comes with a certain amount of risk. We can decrease this risk by understanding all possible outcomes just like at the buffalo lightning slot game. Better yet, we can visualize each outcome through the use of a Monte Carlo Simulation.…

    Read More…

  • Simulating a Short Strategy

    Simulating a Short Strategy

    Shorting in Equities Lab Before, if you wanted to test out a short strategy, you’d have to run your screen and hope that it loses money. That’s now changed thanks to our new “position_weights” feature where you are able to finally simulate a short strategy more closely and identify if your strategy really does make…

    Read More…

Guys, you’re being too selective with your screener

  • Creating Your Own Score

    Creating Your Own Score

    Most anytime we analyze a company or build a screen; we use a number of scores that are pre-built in the Equities Lab system. These scores are tried and tested, but they lack that personal touch. I think it’s time we learned how to build our own scores within the software.…

    Read More…

  • Survivorship Bias – How does it work?

    Survivorship Bias – How does it work?

    I was recently lurking around an online investment forum when the following post came up related to survivorship bias – “I recently ran an experiment where I generated random 7 to 50-stock portfolios from the 500 largest U.S. traded companies and measured their performance over the past 10 years. All of the randomly selected portfolios…

    Read More…

  • Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation As investors, we all know that each investment we make comes with a certain amount of risk. We can decrease this risk by understanding all possible outcomes just like at the buffalo lightning slot game. Better yet, we can visualize each outcome through the use of a Monte Carlo Simulation.…

    Read More…

  • Simulating a Short Strategy

    Simulating a Short Strategy

    Shorting in Equities Lab Before, if you wanted to test out a short strategy, you’d have to run your screen and hope that it loses money. That’s now changed thanks to our new “position_weights” feature where you are able to finally simulate a short strategy more closely and identify if your strategy really does make…

    Read More…

Creating Your Own Score

  • Survivorship Bias – How does it work?

    Survivorship Bias – How does it work?

    I was recently lurking around an online investment forum when the following post came up related to survivorship bias – “I recently ran an experiment where I generated random 7 to 50-stock portfolios from the 500 largest U.S. traded companies and measured their performance over the past 10 years. All of the randomly selected portfolios…

    Read More…

  • Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation As investors, we all know that each investment we make comes with a certain amount of risk. We can decrease this risk by understanding all possible outcomes just like at the buffalo lightning slot game. Better yet, we can visualize each outcome through the use of a Monte Carlo Simulation.…

    Read More…

  • Simulating a Short Strategy

    Simulating a Short Strategy

    Shorting in Equities Lab Before, if you wanted to test out a short strategy, you’d have to run your screen and hope that it loses money. That’s now changed thanks to our new “position_weights” feature where you are able to finally simulate a short strategy more closely and identify if your strategy really does make…

    Read More…

Survivorship Bias – How does it work?

  • Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation – Advanced Investing

    Monte Carlo Simulation As investors, we all know that each investment we make comes with a certain amount of risk. We can decrease this risk by understanding all possible outcomes just like at the buffalo lightning slot game. Better yet, we can visualize each outcome through the use of a Monte Carlo Simulation.…

    Read More…

  • Simulating a Short Strategy

    Simulating a Short Strategy

    Shorting in Equities Lab Before, if you wanted to test out a short strategy, you’d have to run your screen and hope that it loses money. That’s now changed thanks to our new “position_weights” feature where you are able to finally simulate a short strategy more closely and identify if your strategy really does make…

    Read More…

Monte Carlo Simulation – Advanced Investing

  • Simulating a Short Strategy

    Simulating a Short Strategy

    Shorting in Equities Lab Before, if you wanted to test out a short strategy, you’d have to run your screen and hope that it loses money. That’s now changed thanks to our new “position_weights” feature where you are able to finally simulate a short strategy more closely and identify if your strategy really does make…

    Read More…

Simulating a Short Strategy

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