I have extensive stock investing experience (20 years+). I qualified as an MBA to further my business acumen for the purpose of investing only.
Fundamentally - I use a mix of Quality, Value and Momentum factors within my method and generally focus on small to mid range stocks.
I also include the metrics associated with some of the established gurus which I have studied including Susan Levermann & piotroski.
Score based on Susan Levermann's Fundamental, Valuation, Psychological and Technical criteria
Number score [-12-12]: Levermann number + Percentage
Levermann number [-11-11]:
if Return on Equity.% > 20%: +1, < 10%: -1
if EBIT margin.% > 12%: +1, < 6%: -1
if Equity ratio.% > 25%: +1, < 15%: -1
if EPS yield.% > 8.33%: +1, < 6.25%: -1
if EPS yield.% b/on wavg > 8.33%: +1, < 6.25%: -1
if analyst recommendation > 2.5: +1, < 1.51: -1
if EPS revisions ratio > 1.05: +1, < 0.95: -1
if Price.1y growth > 5%: +1, < -5%: -1
if Price.STM reversal > 1%: +1, < -1%: -1
if Price.LTM reversal > 1%: +1, < -1%: -1
if Price.change % sma50 > 1%: +1, < -1%: -1
if Earnings per share.1y growth (forward) > 5%: +1, < -5%: -1
Percentage:
logarithm(Return on Equity.%)
logarithm(EBIT margin.%)
logarithm(Equity ratio.%)
logarithm(EPS yield.% b/on yr)
logarithm(EPS yield.% b/on wavg)
3 * EPS revisions ratio
0.5 * logarithm(Price.1y growth)
logarithm(5 * Price.STM reversal)
logarithm(5 * Price.LTM reversal)
logarithm(5 * Price.change % sma50)
logarithm(Earnings per share.1y growth (forward))
normalized to 100.
logarithm(value) = signOf(value) * ln(abs(value) + 1)
Generally, only scores above 5 (from above Levermann ratings) are considered for further analysis.
Technically - I use MA indicators and support/resistance zones to determine overall market trends, and for entry/exit points.
A devised Edge to exploit market inefficiencies combined with the law of probabilities to compound and promote portfolio growth.
There will be periods of 100% cash when a major market correction is anticipated.
I have decided to share my strategy on Wikipedia because the rewards are generous but it can be a lonely ride..... Welcome aboard
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Experience in securities trading
Risk class 1:
3 or more years
Risk class 2:
3 or more years
Risk class 3:
3 or more years
Risk class 4:
3 or more years
Risk class 5:
3 or more years