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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: DragonTales ✸  😊 😞
Number: of 6243 
Subject: Re: new screen on Nas100 doubles its CAGR
Date: 03/02/24 11:42 AM
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start with Nasdaq100 then from those stocks (101 companies at present) use the following to reduce to 10 companies:
ratio 5 day return excluding today/200 day return excluding today, bottom 10;
then reduce further as follows:
ratio(price,MktCap) bottom 7;
then reduce to 5 stocks further:
ratio(5 day return excluding today/float) bottom 5


I can't figure out why this screen works - what about the screening process makes sense, business wise. For example, using ROE is a known positive about company operations success.

Musselmant, what was the thought process about how you came upon this screening process?

Tails
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This community has written 6,227 posts about Mechanical Investing. The article-length ones it recommended most:
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