Do you want a simple screener with great results?
In the screener I will show you now, I only use one fundamental ratio and one simple technical formula.
Since 2001, this screener showed a total performance of 700% and annualized return of 51%.
It consists of buying stocks in growing industry (Fundamental Ratio).
Here is the description of this fundamental ratio (I will call it IndGrowth):
Percentage of change in current annual EPS of the industry as compared to the same period one year ago.
Formula: EPS for the most recent fiscal year minus the EPS for the same period one year ago divided by the annual EPS one year ago, multiplied by 100.
This data can be calculated easily or can be found in most know screeners, like Reuters screener.
Order all industries by high IndGrowth ratio.
Select about 20% of all stocks in us market from top industries.
Second Rule :
Buy top 20% from the previous list of selected stocks for this formula.
(Today close)/(200 day Moving Average).
When using these both rules as buy rules and selling stocks after one month, you can achieve the performance above.
Some additional buy rules to consider:
- Average dollar volume must be higher than 100 000$ per day.
- Stock price higher than 1$.
- Stock market capitalization must be lower than 500 millions dollars (micro and small caps).
This screener was back-tested for the previous five years.
NB: EPS is earning per share.
Trading Systems
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