No. of Recommendations: 14
Every month, you sell the stock you bought a year ago. Run your screen for the current month, and replace that stock with the highest-ranking stock you don't already own. If it's the same stock, of course you just hold on to it. It can get out of balance, and how you go about fixing that is outside the simple definition.
In a taxable account, you can fiddle with the timing, and sell losers at 364 days and winners at 366 days.
For starters, you can just buy the top 12 in the screen, and arbitrarily pick the first year's sales with something like lowest rank, or just pick losers (taxable account again). Or you could backtest it a few years, and start with what would have been the steady-state holdings from that.
