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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: TGMark ✧  😊 😞
Number: of 6244 
Subject: Re: Portfolio123
Date: 02/08/26 2:04 PM
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Thx all for the responses. Right now P123 is telling me there's a 25% discount for the first year for the 20-year backtest plan.
Instead of $2400/yr it's $1800. Not so bad a premium over the 10 year plan.

For comparison between GTR1 and P123, I plan on looking at the correlation of monthly excess returns (monthly return minus benchmark return). I will also compare CAGR across multiple screens. I expect P123 and GTR1 to match close enough for my purposes.

I am interested to see what you find. For screens that are picking stocks, I tend to want to see pretty good agreement in which tickers are picked.
That is a tall order, given the differences in universes (non-OTC at P123 vs GTR1), lags, and myriad other details.
I did not get what I consider to be great agreement between P123 and GTR1 for the screen I worked on the most.
It had decent CAGR in both, but the picks were almost completely different.

And I read that blog post on backtest length, and saw that P123 usually considers 10 years to be near optimum.
Seemed odd - here, it's always been "the longer the better" which makes intuitive sense.


Mark
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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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