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April 30, 2017
Beneish M-Score

Beneish M-Score

The Beneish M-score was designed as a way to detect possible manipulation of a company’s financial statements. The score itself can be anything between –infinity and +infinity, though most scores fall between -10 to 10. Anything below -2.22 is considered a good score and suggests that the company is likely not manipulating their balance sheet.…

April 10, 2017
Funds Vs. Investing Yourself

Funds Vs. Investing Yourself

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.…

April 5, 2017
Explaining Quantitative Investing

Explaining Quantitative Investing

What exactly is Quantitative investing?

Investing is an extremely difficult endeavor regardless of your goals. It takes both intelligence and strong will in order to do it successfully. With the invention of the computer and the more widespread use of data science, people eventually realized that you could take out much of the human error when it comes to investing in favor of complex investment algorithms that trade based solely on math.…

March 17, 2017
Traditional Technical Analysis Kinda Working

Traditional Technical Analysis Kinda Working

Why it’s hard to Trust Technical Analysis

Over this past month or so we‘ve been writing a lot of articles that are very pro-technical analysis. Personally, I was fascinated by technical analysis when I first started investing, but I have to say, my tastes have changed. Either way, our most recent featured screen is actually based off of the SCTR designed by StockCharts, and it works amazingly.…

March 12, 2017

Investment Green Flags – High F-Score

High Piotroski F-Score

 

A recurring name throughout our software and website, the F-score has been continuously tested under many different circumstances and never ceases to amaze me. It may be simplistic, but, when used correctly, can be a very powerful tool for your portfolio.

For this Green Flag we want to look at the two calculations we have in the system for the Piotroski F-Score – Yearly and Trailing 12 Months.…

March 10, 2017

Be Careful What you Short

 

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.

March 5, 2017

Can’t Compare Split Adjusted Prices

If you have been using the Equities Lab system in recent weeks, you may have seen a new error that hadn’t appeared before.

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Stock Server Error:Server Error:Cannot compare split ajusted quantities to constants: greater(Close, 444)

Don’t worry! This error message doesn’t mean that the system is down; it simply tells you that there is a split adjusted value in a place it shouldn’t be.

March 3, 2017
In a nutshell, bitcoin is either something as monumental as the introduction of the internet or as futile as the tech bubble of the late 90s. Bitcoin has been in the news for quite some time now, and over time, one begins to wonder if this is a bet you should be in on.

How to Long or Short Bitcoin

In a nutshell, Bitcoin is either something as monumental as the introduction of the internet or as futile as the tech bubble of the late 90s. Bitcoin has been in the news for quite some time now, and over time, one begins to wonder if this is a bet you should be in on.

February 25, 2017

Backtest Rebalancing

What is rebalancing?

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.…

February 1, 2017

StockChart’s SCTR Really Knows how to Rank Technical

SCTR – Technical Analysis

The SCTR no longer gets the performance pictured here, even when backtested on the dates shown.  This article is retained as a warning for why we no longer allow comparisons between split-adjusted Closing prices and constants, or ranking of split adjusted closing prices.  The stocks with higher split adjusted closes in the past turned out to have lower SCTR scores.