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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I was planning on making a video showcasing this idea but realize it is not unique enough to justify a video.
These are some PCFs and an EasyScan I've been playing with that many of you might enjoy taking a look at.
The idea is to find stocks (over the past year or so) that have shown overall price performance better than 75% of the general market. For each four month segment, they were in the top quarter of the market for overall price performance.
I hoped it would uncover stocks like (bases on 2/22/06 close)
TIE
GMXR
HOLX
EMKR
...and it did.
To start, review the following videos:
How to create a Personal Criteria Forumula (PCF)
Using EasyScan to find stocks that meet your own criteria
Create your own stock rankings using WatchLists and Sort conditions
Now create the following PCFs:
4-month Direction
100*(AVGH42+AVGL42)/(AVGH42.84+AVGL42.84)
4-month Direction (4m ago)
100*(AVGH42.84+AVGL42.84)/(AVGH42.126+AVGL42.126)
4-month Direction (6m ago)
100*(AVGH42.126+AVGL42.126)/(AVGH42.168+AVGL42.168)
4-month Direction (8m ago)
100*(AVGH42.168+AVGL42.168)/(AVGH42.210+AVGL42.210)
4-month Direction (10m ago)
100*(AVGH42.210+AVGL42.210))/(AVGH42.252+AVGL42.252)
1-year Direction
100*(AVGH126+AVGL126)/(AVGH126.126+AVGL126.126)
Once you create and calculate these 6 PCFs create a new EasyScan with the following condtions and limits:
Price Per Share (limit to fit your price requirements)
Volume 90-day (limit to fit your volume requirements)
4-month Direction (limit condition type MARKET RANK: 75 to 99)
4-month Direction (4m ago) (limit condition type MARKET RANK: 75 to 99)
4-month Direction (6m ago) (limit condition type MARKET RANK: 75 to 99)
4-month Direction (8m ago) (limit condition type MARKET RANK: 75 to 99)
4-month Direction (10m ago) (limit condition type MARKET RANK: 75 to 99)
Save your EasyScan and call it whatever you like. Sort your resulting WatchList in DESCENDING order by the last PCF "1-year Direction".
Hit your spacebar and let me know what you think!
I ran this scan based on 2/22/06 market close. It found around 40 stocks (your scan will find more or less depending on how you set the Price Per Share and Volume 90-Day conditions).
Don't be afraid to play with the ranges for this EasyScan. By increasing or decreasing the Market Ranks from 75 down to 50 or up to 90 you will expand or contract the results. You can also use the same PCFs to find stocks that underperformed for a part of the year and then started out-performing. Try changing some Market Ranks to 1 to 25 to see what I mean.
Enjoy!
- Craig
Here to Help!
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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Nice idea, Craig! And now may I suggest that some of you try this with Industry Groups. In your Easy Scan, set the watchlist to scan to Media General Industry Groups. Try it out, and let us know what you think.
- Doug
Teaching Online!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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If you use Doug's idea be sure to set the condition type to LIST RANK instead of MARKET RANK.
I just tried this and found a nice list of industries/sub-industries
WatchList: Media General Industry Groups
4-month Direction (limit condition type LIST RANK: 50 to 99)
4-month Direction (4m ago) (limit condition type LIST RANK: 50 to 99)
4-month Direction (6m ago) (limit condition type LIST RANK: 50 to 99)
4-month Direction (8m ago) (limit condition type LIST RANK: 50 to 99)
4-month Direction (10m ago) (limit condition type LIST RANK: 50 to 99)
No need for the volume or price conditions.
- Craig
Here to Help!
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Registered User
Joined: 7/23/2005
Posts: 39
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Hi, Craig
I likes your idea a lot. I came cross an article to manage a ETF potofolio by using a ranking system based on outperformer. You can find the article in following link: (URL removed by Moderator)
I think to incorporate dividends into return calculation is important. But I am not sure how to use telechart to create a ranking system after the sorting. Thanks
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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You are welcome to add DIVIDEND YIELD to your EasyScans and set it as high as you like.
- Craig
Here to Help!
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